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COAS hosts Sequel to discussions and seminars on ‘Interplay of economy and security’

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Pakistan’s already powerful military is taking an even greater role in running the country as the economy stumbles.

Army chief Qamar Javed Bajwa has privately met top business leaders to find ways to bolster the economy, according to people familiar with the matter. The three meetings Bloomberg is aware of took place this year at heavily guarded military offices in Karachi, the financial capital, and Rawalpindi, a northern town that houses the army’s headquarters.

At the meetings, arranged through mutual contacts, Bajwa asked business leaders how to fix the economy and what would lead them to make investments, said the people, who asked not to be identified. Some of the meetings resulted in prompt decisions including sending instructions to top government officials, the people said, without giving any specific examples. They said the general was concerned about restoring confidence among the business community.

An army spokesman declined to comment when asked about the meetings, however on Thursday the military issued a statement after Bajwa hosted a gathering of government economic officials and business leaders on Wednesday.

“National security is intimately linked to economy while prosperity is function of balance in security needs and economic growth,” Bajwa said in the statement.

The military, which has staged numerous coups since Pakistan’s founding in 1947, has seen a direct impact from the economic slowdown: Defense spending was frozen in the 2020 fiscal year budget for the first time in more than a decade. That comes as soldiers are on high alert against terrorists based in Afghanistan and conventional forces in arch-rival India, which has put the disputed area of Kashmir under lockdown.

Many business leaders and economic analysts in Pakistan actually welcome a greater role for the generals. They view Prime Minister Imran Khan’s party -- less than halfway through its first term in office -- as inexperienced compared with the military, which is the country’s most respected and powerful institution.

But others are concerned about what an ever-increasing role for the military means for Pakistan’s democracy and the future of civilian institutions that haven’t been given the space to develop.

“The growing role of the military in the economy’s management in addition to its traditional dominance of the security matters is nothing but a soft coup that is a setback for the democratic process,” said Yousuf Nazar, a former Citigroup Inc. banker and author of a book on Pakistan’s economy. “This will have far reaching repercussions,” he said, adding generally that strong-arm methods for management will not work for basic economic and social issues.

Standing With Khan
The finance ministry downplayed the extent to which the army influences economic policy. While the army chief may have ideas about the economy, “we haven’t seen any kind of process interference,” Finance Ministry spokesman Omar Hamid Khan said. “They have their own scope of activities and civilian government has their own.”

Pakistan is going through an unusual period in which the democratically elected government and the army appear to be working in sync. The army has ruled the country for almost half its 72-year-old history, leading to persistent worries among civilian leaders about a potential coup.

Khan has publicly stated his government and the army have a comfortable working relationship. He gave the 58-year-old Bajwa a three-year extension as army chief in August -- only the second time that’s happened in nearly a decade -- amid heightened tensions with India over Kashmir. Bajwa was initially reluctant to accept the extension but his personal ties with several top government leaders across the world made the prime minister press him to stay in office, according to army spokesman Asif Ghafoor.

“This is the first government with which the army is standing,” Khan said in a television interview in July. “Historically, the army and the government worked separately. Right now, all institutions are standing with me.”

Economic Managers
The government estimates economic growth in Pakistan at the slowest pace in over a decade -- at 2.4% in the year started July. Pakistan secured a $6 billion loan in May from the International Monetary Fund to help stabilize the economy after a deficit blowout.

The nation’s budget deficit rose to 8.9% of gross domestic product in the year ended June, the highest in almost three decades, while record imports about two years ago had left foreign reserves dwindling. Companies across the board, from Toyota’s local unit to Power Cement Ltd. have reduced production while many others, including Nestle SA’s Pakistan unit, have cut their workforce.

In the closed-door meetings with businessmen, the army chief discussed the country’s current account deficit, the problem of corruption and slowing foreign direct investment, the people familiar with the interactions said.

“We need generals looking after every aspect of Pakistan’s economy,” said Faizan Ahmed, research head at Karachi-based Optimus Capital Management Pvt. “The army is the most professionally organized and well-run institution in Pakistan.”

A Gallup Pakistan opinion poll released in 2017 -- the most recent data available -- showed the vast majority of Pakistanis trust the military more than other institutions even while backing democracy as the best system of governance. The business leaders saw the meetings with Bajwa, who has a reputation for getting things done, as beneficial to them given the military’s power and decision-making clout.

Surprise Move
The army itself has a substantial stake in the private sector. It runs the Fauji Foundation, Pakistan’s second largest conglomerate, with interests in everything from food to power.

Yet despite its business interests and all-pervading presence in most aspects of Pakistani life, the move to seek an active role in shaping economic policy has still surprised many observers.

“While the military has historically played a key role in foreign and national security policy, its role in the economy has mostly been limited,” Uzair Younus, a South Asia director at Washington-based consultancy Albright Stonebridge Group LLC. “However, with the economy slowing down, the stakes have been raised as a persistently weak economy risks defense budget allocations.”

Freeze
Pakistan's defense budget unchanged for the first time in at least a decade

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Bajwa has been named a member of the high-powered National Development Council, put in place in July to set the country’s long-term economic policy. A member of the army’s Inter-Service Intelligence has also been nominated to a government committee set up to monitor the energy sector.

The nation is looking to avoiding tough financial sanctions to meet global anti-money laundering and counter-terrorism financing standards and has also appointed a high-level committee that includes at least two senior military officials.

The army is stepping into its new economic role at a time when the slowdown has hurt Khan’s ratings.

For the first time since the elections in July last year, Khan’s approval rating has fallen to a level where more people don’t like him. The prime minister’s popularity has dwindled about 18 percentage points from 64% during elections last year to 46% in August, according to a survey by Roshan Pakistan. Khan’s proximity to Bajwa is likely to help him ride out the drop in ratings.

“Any drop in ratings or opposition alliance is not a threat for Khan because he enjoys unprecedented total complete support of the establishment,” said Rashid Ahmed Khan, who heads the department of politics and international relations at the Lahore-based University of Central Punjab. “The army is the only support that can save Imran Khan from downfall.”

https://www.bloomberg.com/news/arti...ef-holds-private-meetings-to-shore-up-economy

Comments - Army taking charge of economy. It can only happens in Pakistan.
 
It happens only in Pakistan .What is need of wasting money on expenses of finance ministry if army has to run economy
 
1) Implementation of government policies/initiatives would be a dream, if we plan to use the same bureaucracy, the majority of which (higher positions) even lack how to use a technology email. This is a Bottleneck and There is a need to induct/depute fresh officials with requisite skills/knowledge of 21st century in areas requiring such skills e.g. finance, economics, commerce, etc. I wonder what Dr. Ishrat is able to achieve with regard to reforms in bureaucracy.

2) The geostrategic location of Pakistan is both a boon and a bane for us. Prevailing conditions in the region pose an existential threat to the country. Any worsening of the situation in Afghanistan and Iran shall have a direct adverse impact on Pakistan, with respect to our economic and physical security. India, given the happenings in Kashmir, continues to pose a direct threat of war between the two nations. Under the circumstances, it was a good move on the part of the COAS to explain to our Business Community that it was really in their hands to ensure that an economic meltdown does not take place in the country, while the armed forces were on a "red alert" for keeping Pakistan secure against any internal or external threats. The matter should be taken as a warning to the entrepreneurial entities to cooperate with the government's initiatives for documentation of the Economy and taxation, rather than an opportunity for cathartic expression of their grievances against Govt. policies.
3) Security alone( Which is yet incomplete see high security provide to the Srilanka team) is not enough. There should be an assurance for the smooth operation of business and profits. Our industry can not compete with cheap imports from China. Our productivity of China workers is almost double because of intensive training and education. These setbacks have to be tackled at short term and long term bases. There is an urgent need to increase agriculture production through research and modernization. This should be followed by a tax on agriculture income.
 
it means civilians are corrupt and incompetent.
yes 40 years dictatorship in Pakistan was a glory time right? we were the richest country when musharaf occupied Pakistan right?
 
Tycoons’ dinner reception with COAS: Top businessmen explode before Gen Bajwa

Listen





535626_5610456_Gen-Bajwa_akhbar.jpg

Army Chief General Qamar Javed Bajwa. File photo

ISLAMABAD: Heads of Pakistan’s leading business houses have called on Chief of Army Staff (COAS) General Qamar Javed Bajwa Wednesday night to convey their serious concerns about Pakistan’s stagnating economy and the government’s tepid response to the debilitating situation facing the drivers of the country’s economy.

Their main gripe was that the government does not go beyond verbal assurances and that its words do not match its action.

Opinion: Evolving recession

Sources with the knowledge of what was discussed in the meeting claimed that the army chief heard the grievances expressed by 16 to 20-strong delegation and assured them of his help, adding that he will try to do something for the resolution of their problems at the earliest. The COAS also floated an idea that an internal committee be formed comprising military officers to work on the delegates’ complaints so that they could be resolved as soon as possible, the sources claimed.

More: Pakistan to seek IMF’s waivers after failure to meet collection target

The businessmen met the COAS at a dinner reception that continued late at night on Wednesday.

General Bajwa advised the business tycoons that they should cooperate with the government and do not side with anti-government forces.

Addressing the leading businessmen of the country, the army chief said that we all love Pakistan, and the country needs them the most. He hailed the services rendered by the business community for Pakistan, adding that with their (business community) efforts the country will move forward in the comity of the nations. He also consoled them, saying that he feels their pain.

Related: ADB sees Pakistan’s growth lowest at 2.8pc in South Asia

The delegates did not keep their anger and frustration at the government’s attitude towards economy from General Bajwa and conveyed to him that their business units are getting closed one by one, and if remedial measures were not taken then all their business would be shut, leaving countless labourers unemployed. They said that labourers’ bread and butter is also linked with their businesses. They said that it their businesses were a result of years of hard work after creation of Pakistan and they have been managing through thick and thin in different eras.

The business tycoons requested the Army Chief to do something for God sake, adding that it was a matter of pain that they are not seeing light at the end of the tunnel. They said that if nothing was done on emergency basis the situation will deteriorate further multiplying the problems.

It is to be mentioned here that in the last meeting with traders in Karachi few months ago, the Army Chief had assured the trader leaders that he would talk with the government for resolution of their problems. The COAS had asked them to contact him if they face any problem(s) in future.

Mehtab Haider adds: The business community expressed its concerns about stagflation where the GDP growth is touching the lowest ebb while inflation is persistently rising and its resulting into halting economic activities.

At this point of time the FBR is squeezing the businesses to maximise its revenues. They also complained about increasing cost of doing business was making hard for them to make their business venture economically viable.

Among those who were present in the meeting included former president FPCCI Zubair Tufail, Arif Habib, Mian Mansha, Hussain Dawood, Ali Mohammad Tabba, Ali Jameel, Javed Chinoy, Zubair Motiwala, Ijaz Gohar, Aqeel Karim Dhedi, Zubair Tufail, Siraj Qasim Teli, Saqib Shirazi and some other textile tycoons. The sources said that the business tycoons might also meet with Prime Minister Imran Khan. The businessmen criticised NAB activities against them and further stated that the element of fear among the public sector increased manifold so no public sector employee was ready to resolve their genuine problems.

No official word was available but sources who held discussions with top business tycoons prior to this meeting told this scribe that the business activities were standing at standstill situation causing serious concerns for the business community. The business tycoons were perturbed mainly because of increasing policy rate and exchange rate that resulting into creating uncertainties and barring them to take decision on making investments related decisions.

The foreign direct investment (FDI) is showing stagnant results. There are many sectors of large scale manufacturing where the growth is on decline from last several months. The textile sector is not performing up to the desired because of increased tax burden after withdrawal of zero rating. Mansoor Ahmad adds from Lahore: The businessmen apprised the COAS that the GDP growth is going down but the revenues are increasing which is never heard of in any economy. They said 90 percent increase in revenues came from the existing taxpayers that has increased the cost of doing business.

The corruption rate has increased instead of declining. They feared that after losing the export market they are likely to lose the domestic market to imports if the energy and power rates are not brought down.

They said instead of eradicating corruption and losses in power and energy sectors the burden has been passed on to businesses. Now they await a response from the concerned quarters.

It was also learnt the businessmen registered their concern over unusual activity of the FBR officials -- making calls and paying unplanned visits. Many businessmen also narrated the fact that is was becoming difficult for them to get money from the concerned financial institution for either running their existing business or expanding their respective facilities. They stated the institution was refusing to facilitate them on the pretext of low dollar reserves in the country.

The half cooked documentation drive is creating more uncertainty as the CNIC condition is being deferred by the FBR realising broken value chain in many sectors. Textile sector particularly the spinners are sitting on huge unsold stocks as small weavers are not lifting yarn because of CNIC condition.

Erum Zaidi adds from Karachi: One of the leading businessmen who attended the meeting with COAS Gen Bajwa told The News that Hammad Azhar told the meeting that the IMF never asked Pakistan to increase the interest rate, a decision which was taken in the light of the dismal economic situation. However, the government is prepared to revise the interest rates downwards as and when the economic situation improves, Hammad was quoted as saying.

https://www.thenews.com.pk/print/53...coas-top-businessmen-explode-before-gen-bajwa
 
Tycoons’ dinner reception with COAS: Top businessmen explode before Gen Bajwa

Listen





535626_5610456_Gen-Bajwa_akhbar.jpg

Army Chief General Qamar Javed Bajwa. File photo

ISLAMABAD: Heads of Pakistan’s leading business houses have called on Chief of Army Staff (COAS) General Qamar Javed Bajwa Wednesday night to convey their serious concerns about Pakistan’s stagnating economy and the government’s tepid response to the debilitating situation facing the drivers of the country’s economy.

Their main gripe was that the government does not go beyond verbal assurances and that its words do not match its action.

Opinion: Evolving recession

Sources with the knowledge of what was discussed in the meeting claimed that the army chief heard the grievances expressed by 16 to 20-strong delegation and assured them of his help, adding that he will try to do something for the resolution of their problems at the earliest. The COAS also floated an idea that an internal committee be formed comprising military officers to work on the delegates’ complaints so that they could be resolved as soon as possible, the sources claimed.

More: Pakistan to seek IMF’s waivers after failure to meet collection target

The businessmen met the COAS at a dinner reception that continued late at night on Wednesday.

General Bajwa advised the business tycoons that they should cooperate with the government and do not side with anti-government forces.

Addressing the leading businessmen of the country, the army chief said that we all love Pakistan, and the country needs them the most. He hailed the services rendered by the business community for Pakistan, adding that with their (business community) efforts the country will move forward in the comity of the nations. He also consoled them, saying that he feels their pain.

Related: ADB sees Pakistan’s growth lowest at 2.8pc in South Asia

The delegates did not keep their anger and frustration at the government’s attitude towards economy from General Bajwa and conveyed to him that their business units are getting closed one by one, and if remedial measures were not taken then all their business would be shut, leaving countless labourers unemployed. They said that labourers’ bread and butter is also linked with their businesses. They said that it their businesses were a result of years of hard work after creation of Pakistan and they have been managing through thick and thin in different eras.

The business tycoons requested the Army Chief to do something for God sake, adding that it was a matter of pain that they are not seeing light at the end of the tunnel. They said that if nothing was done on emergency basis the situation will deteriorate further multiplying the problems.

It is to be mentioned here that in the last meeting with traders in Karachi few months ago, the Army Chief had assured the trader leaders that he would talk with the government for resolution of their problems. The COAS had asked them to contact him if they face any problem(s) in future.

Mehtab Haider adds: The business community expressed its concerns about stagflation where the GDP growth is touching the lowest ebb while inflation is persistently rising and its resulting into halting economic activities.

At this point of time the FBR is squeezing the businesses to maximise its revenues. They also complained about increasing cost of doing business was making hard for them to make their business venture economically viable.

Among those who were present in the meeting included former president FPCCI Zubair Tufail, Arif Habib, Mian Mansha, Hussain Dawood, Ali Mohammad Tabba, Ali Jameel, Javed Chinoy, Zubair Motiwala, Ijaz Gohar, Aqeel Karim Dhedi, Zubair Tufail, Siraj Qasim Teli, Saqib Shirazi and some other textile tycoons. The sources said that the business tycoons might also meet with Prime Minister Imran Khan. The businessmen criticised NAB activities against them and further stated that the element of fear among the public sector increased manifold so no public sector employee was ready to resolve their genuine problems.

No official word was available but sources who held discussions with top business tycoons prior to this meeting told this scribe that the business activities were standing at standstill situation causing serious concerns for the business community. The business tycoons were perturbed mainly because of increasing policy rate and exchange rate that resulting into creating uncertainties and barring them to take decision on making investments related decisions.

The foreign direct investment (FDI) is showing stagnant results. There are many sectors of large scale manufacturing where the growth is on decline from last several months. The textile sector is not performing up to the desired because of increased tax burden after withdrawal of zero rating. Mansoor Ahmad adds from Lahore: The businessmen apprised the COAS that the GDP growth is going down but the revenues are increasing which is never heard of in any economy. They said 90 percent increase in revenues came from the existing taxpayers that has increased the cost of doing business.

The corruption rate has increased instead of declining. They feared that after losing the export market they are likely to lose the domestic market to imports if the energy and power rates are not brought down.

They said instead of eradicating corruption and losses in power and energy sectors the burden has been passed on to businesses. Now they await a response from the concerned quarters.

It was also learnt the businessmen registered their concern over unusual activity of the FBR officials -- making calls and paying unplanned visits. Many businessmen also narrated the fact that is was becoming difficult for them to get money from the concerned financial institution for either running their existing business or expanding their respective facilities. They stated the institution was refusing to facilitate them on the pretext of low dollar reserves in the country.

The half cooked documentation drive is creating more uncertainty as the CNIC condition is being deferred by the FBR realising broken value chain in many sectors. Textile sector particularly the spinners are sitting on huge unsold stocks as small weavers are not lifting yarn because of CNIC condition.

Erum Zaidi adds from Karachi: One of the leading businessmen who attended the meeting with COAS Gen Bajwa told The News that Hammad Azhar told the meeting that the IMF never asked Pakistan to increase the interest rate, a decision which was taken in the light of the dismal economic situation. However, the government is prepared to revise the interest rates downwards as and when the economic situation improves, Hammad was quoted as saying.

https://www.thenews.com.pk/print/53...coas-top-businessmen-explode-before-gen-bajwa
So businessmen going over civilian government to COAS, then whats the need of civilian government if its impotent. This feels like deja vu.
 
Army's job is to serve Pakistan they should help Imran Khan in making new Pakistan
 
so now live with this Bloomberg story Mr the Eagle ,now ban this Bloomberg if you can , and tell me haven't they narrated the same story in their this 4 page long write which I told you in just a half page , read this story and read my thread "Leading industrialists to meet COAS " " feel the depth of each and every word of mine in that threat and compare it with Bloombergs long story , this is called deep in sight , the victims of inferiority complex are Happy and satisfied when an international media out let says some thing but are arrogant rude biased to a humble worried son of soil , now go read my thread which you closed , when you people are committed to remain in denial mood then the heavens put slap immediately on your faces because you are the sinner who deny the truth , @The Eagle @Dubious @Irfan Baloch @WebMaster @Horus
Screenshot_2019-10-03-01-28-20.png
 
so now live with this Bloomberg story Mr the Eagle ,now ban this Bloomberg if you can , and tell me haven't they narrated the same story in their this 4 page long write which I told you in just a half page , read this story and read my thread "Leading industrialists to meet COAS " " feel the depth of each and every word of mine in that threat and compare it with Bloombergs long story , this is called deep in sight , the victims of inferiority complex are Happy and satisfied when an international media out let says some thing but are arrogant rude biased to a humble worried son of soil , now go read my thread which you closed , when you people are committed to remain in denial mood then the heavens put slap immediately on your faces because you are the sinner who deny the truth , @The Eagle @Dubious @Irfan Baloch @WebMaster @Horus
View attachment 582282

This is the last time I will be very reasonable with you. Here after, if you have so much time to drag military into any thing, I will surely arrange a safe passage for you. You don't any idea as what is going on nor you didn't understand what I say but just because, some ego is hurt; you have to keep ranting on an issue without an iota of the matter. Your post is still available and it is about time to show some grace.

“National security is intimately linked to eco while prosperity is function of balance in security needs & economic growth. Aim of various discussions and seminars was to bring stake holders at one platform to formulate recommendations for a synergistic way forward”, COAS. (2of2) from DG ISPR.

Read the wording carefully and not forget that COAS was made member of Economic Team long ago by the Government. Do you remember?


Regards,
 
Wow army are getting pretty frontal lately on who runs the country
Lets see how this pans out
 
So businessmen going over civilian government to COAS, then whats the need of civilian government if its impotent. This feels like deja vu.

That's because it's total fake news, It's no surprise to see Indians spreading fake news with their American counterparts and geniuses on PDF jumping up and down like little kids without knowing the truth.
 
So businessmen going over civilian government to COAS, then whats the need of civilian government if its impotent. This feels like deja vu.

Read carefully that these seminars are held in sequel of planned discussions on such level..... The history tells that COAS was also made a member of Economic Team of Government of Pakistan because, Military in-fact plays a major role by providing security so that the investments can flow inside country.



What Civilian Government does or even fails at certain points, has nothing to do with Army but I can understand the reason to troll and taking such jibes....

Comments - Army taking charge of economy. It can only happens in Pakistan.

so now live with this Bloomberg story Mr the Eagle

I will rather take these two tweets more credible in regard to COAS attending an Economic Seminar. . . . you can hang up to Bloomberg for your satisfaction...



Told you before that I have no issue whether you oppose or favour any political party but don't become the part of greater agenda to malign Institute without an iota of the matter.... Read tweets carefully and than go back to your locked thread to comprehend; if you can.
 
Read carefully that these seminars are held in sequel of planned discussions on such level..... The history tells that COAS was also made a member of Economic Team of Government of Pakistan because, Military in-fact plays a major role by providing security so that the investments can flow inside country.



What Civilian Government does or even fails at certain points, has nothing to do with Army but I can understand the reason to troll and taking such jibes....





I will rather take these two tweets more credible in regard to COAS attending an Economic Seminar. . . . you can hang up to Bloomberg for your satisfaction...



Told you before that I have no issue whether you oppose or favour any political party but don't become the part of greater agenda to malign Institute without an iota of the matter.... Read tweets carefully and than go back to your locked thread to comprehend; if you can.

Armed forces roles is to ensure that the countries border are kept safe they are not supposed to be used as security guards
Its the role of the government to ensure secure and healthy environment for the investors .
If the governement does not have the capacity do provide necessasry services to the investors than that does not mean army should meddle in civilian affairs
If the capacity isnt there for the civil gov to perform that task than that capacity should be created as if we dont do it now than who will?
 
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