Economic terrorism

The 200 are winning and the 180 million are losing. Democratic governments around the world fight economic terrorism. Ours supports it
Just imagine: nearly 90 percent of the wealth created in Pakistan over the past 10 years has gone into the coffers of the top 2 percent of the population. As a consequence, at least 60 percent of Pakistan’s population is managing to survive at or below $2 per day – that is 110 million Pakistanis surviving at or below Rs200 per day.
Rampant corruption is not the only fact of life in Pakistan. For the record, violent terrorism killed 5,496 Pakistanis in 2014. For the record, over the past 15 years, there have been 2,979 incidents of sectarian violence in which 5,059 Pakistanis lost their lives (9,713 were injured).
Next, the most ignored fact of Pakistani life is economic terrorism that impacts 180 million Pakistanis albeit in a non-lethal fashion. Look at the power sector: there are around 20 million electricity connections and some two dozen Independent Power Producers (IPPs). Some IPPs were guaranteed a return on equity of 15 percent but they are raking in returns of up to 42 percent per year. That is economic terrorism against at least 100 million Pakistanis; non-lethal losses amounting to Rs400 billion a year every year.
Look at terrorism in the banking sector: there are 32 banks in the private sector and around 10 million Pakistanis with bank accounts. According to the Competition Commission of Pakistan (CCP), banks are “operating like a cartel to fleece depositors”. Imagine: One bank privatised during the first Nawaz government earns an annual return on equity of 30 percent. That is economic terrorism against 10 million Pakistanis – non-lethal losses amounting to Rs300 billion a year every year.
Look at terrorism in the oil sector: our oil cartel has nine major members: Pakistan State Oil (PSO), Pak-Arab Refinery (PARCO), Attock Refinery Limited (ARL), Attock Petroleum, National Refinery Limited (NRL), Pakistan Refinery (PRL), Chevron/Caltex, Shell Pakistan and Total-PARCO.
Imagine: refining margins charged by Pakistani refineries are almost twice as high as being charged by refineries outside Pakistan. Imagine: the oil cartel sucks in Rs54 billion a year from the so-called ‘deemed duty’. That is economic terrorism against 180 million Pakistanis with non-lethal losses amounting to Rs150 billion a year every year.
Look at terrorism in the cement sector: the cartel has 21 members and annual sales approaching Rs100 billion. The CCP called it “anti-competitive behaviour” and cement manufacturers including D G Khan Cement, Lucky Cement and Maple Leaf as “habitual cartel offenders”.
Look at terrorism in the automobile sector: the cartel has 19 members and there are gross violations of laws in new automobile sales, body repair and spare parts. Three big units have combined sales of Rs130 billion and profits approaching Rs8 billion. According to the CCP, there is massive “collusion and cartelization”.
There are about 200 families involved in this non-lethal game of economic terrorism. To be sure, economic terrorism is not intended to kill its target – economic terrorism makes sure that at least 110 million Pakistanis remain poor, destitute and impoverished.
To be certain, the 200 are winning and the 180 million are losing. Democratic governments around the world fight economic terrorism. Ours supports it. Democratic governments around the world protect voters who cannot protect themselves against economic terrorism. Democratic governments around the world support victims of economic terrorism. Ours sides with the ‘terrorists’.
The writer is a columnist based in Islamabad.
Email: farrukh15@hotmail.com Twitter: @saleemfarrukh