Dealing with Pak

Let us be blunt—Pak is winning the war of “thousand cuts on India” successfully. It has killed many of our army personnel without using its army directly. It has enough terrorists-cockroaches both inside Kashmir Valley and in Pak-occupied Kashmir (PoK). It can go on sending them to martyrdom with very low cost to its Army/ economy.

At least 70 percent of the market capitalization of the Karachi stock exchange is owned by the army and other related groups.

It has been able to create a substantial number of sympathizers among even school going girl children and women who rush to protect terrorists. They pelt stones or provide a human shield.
The war is between creating a Caliphate by terrorists supported by Pak and the secular ideology of India where India is losing both manpower and in ideas.

It is important to recognize and internalize the fact that Pakistan is not a normal country with leaders, parliament, constitution, Army etc. It is one of the few places where the Army owns a country and runs it. The Army controls the country and owns its Economy.

This is an important issue since studies have found that a large number of corporates in Pakistan are ultimately owned by Fauji Foundation [FF], Army Welfare Trust [AWT] Bahria Foundation [BF], Shaheen Foundation [SF] all owned by its different wings of armed forces. [See Paper presented by Dr Ayesha Siddiqa-Agha: Power, Perks, Prestige And Privileges: Military’s Economic Activities In Pakistan in The International Conference on Soldiers in Business–Military as an Economic Actor “Jakarta, October 17-19, 2000].

At least 70 percent of the market capitalization of the Karachi stock exchange is owned by the army and other related groups. Hence do not try to think of Pakistan without its Army, whoever may be temporarily and nominally ruling that place.

Also, a significant portion of its GDP is due to Army controlled entities. [See Military Inc. Inside Pakistan’s Military Economy by Ayesha Siddiqa—OUP—2007] and one can easily say that Pakistan Economy and its Army / ISI are synonymous.

Unless this elementary fact is internalized we are not going anywhere. This implies we should stop talking of a stable Pakistan since a stable Pak means multiple attacks on many more cities of India by that rogue organization ISI which is the core of the Pakistan Army and which is at the heart of Pakistan’s economy.

Almost all terror attacks in any part of the world in the last decade have a link with Pakistan. Terrorism is funded by Saudi Arabia, planned in London and executed by Pakistani foot soldiers globally.

Hence giving MFN – Most Favored Nation – status to Pak in 1996 is a grave error committed by India which has not been reciprocated. Actually, we have provided MFN to the Pak Army.

There are three groups in India who are obsessed with friendship with Pakistan. One is the oldies born in that part before partition and who are nostalgic about Lahore Havelis, Halwas, and Mujiras. The second is the Bollywood and other assorted groups who look at it as a big market. Dawood gang has financed enough of these useful idiots.

The third is the candle light holding bleeding heart liberals [BHL’s] who cannot imagine India doing well without its younger brother being taken care of. All three are proved wrong a hundred times but all three are in important opinion maker’s role. Shun them, avoid them and ridicule them.

These Wagah Candle Kissers [WCK] either do not understand the Economic power structure of Pakistan or understand and naively hope that it will not be an issue.

Their constitution – 1973 version – visualizes – quoting from its preamble “Whereas sovereignty over the entire Universe belongs to Almighty Allah alone, and the authority to be exercised by the people of Pakistan within the limits prescribed by Him is a sacred trust; wherein the principles of democracy, freedom, equality, tolerance and social justice, as enunciated by Islam, shall be fully observed”.

It is the Army which is the chosen instrument to implement the will of God. This was recently clearly enunciated by its then Chief of Army Staff (COAS) General. Kiyani in terms of protecting Islam and Protecting Pakistan are the sovereign duties of the armed forces.

Actually, he suggests that the role of the army is more than protecting the country but the idea and religion. Recently the UN [appointed by President Zardari] team probing the death of Benazir Bhutto could interview all civil leaders including PM and President but not the Army brass. When Army objected to Kerry –Lugar bill the president had to bring in Kerry himself to talk to Chief of the armed forces.

In India, the defense minister can ask Army chief to Court Martial a General but in Pakistan, any such attempt will result in a coup. That is why the Pakistan always negotiates with a gun to its own head. It wants to assert its suicidal tendencies and shout about deluge if it fails in the talks.

The candle kissers are doing a great disservice to India and also to Pakistan since that State has visualized itself as the protector and promoter of the God’s vision. One dimension of that vision is to train the suicide bombers to terminate the unbelievers inside and outside Pakistan. They so called peaceniks naively believe that that Army will go away or the foundations of the state of Pakistan will fade away.

Almost all terror attacks in any part of the world in the last decade have a link with Pakistan. Terrorism is funded by Saudi Arabia, planned in London and executed by Pakistani foot soldiers globally. Its strategic ally namely the USA wants to body screen every Pakistani entering USA and also wants to open their entire luggage particularly if it has been packed by them.

Its other mentor namely Saudi Arabia has a system of issuing visas to Pakistanis after severe verification. It’s taller than mountain deeper than ocean dost namely China is worried about Pakistani role in Xinxiang uprising and quietly hangs the rebels many of them from the PoK. Currently, Pakistan is in the abyss and it would be beneficial that it is split into many countries–not only for peace in India but also all over the world.

India should take the following steps to destabilize and cripple the economy of Pakistan:
These were suggested by us in 2008 and hope we wake up at least after nearly 10 years…

1. Identify the major export items of Pakistan (like Basmati rice, carpets, etc) and provide zero export tax or even subsidize them for export from India. Hurt Pakistan on the export front.
2. Identify the major countries providing arms to Pakistan and arm twist them. Tell Brazil and Germany (currently planning to supply massive defense items to Pakistan) that it will impact their ability to invest in India. Tell Germany that retail license to Metro will be off and other existing projects will be in jeopardy.
3. Incidentally, after the arrival of Coke and Pepsi in China, the human rights violations of China are not talked about much by US government organs. Think it is a coincidence? Unless we use our markets to arm-twist arms exporters to Pakistan, we will not achieve our objectives.
4. Tell American companies that for every 5% increase in FDI limit for them, their government needs to reduce equipping Pakistan by $10 billion. That is real politics, not whining. Let us remember that funds are in desperate search of emerging markets and not the other way about. Let us also remember that international economics is politics by another name.
5. Create assets to print/distribute their currency widely inside their country. To some extent, Telgi types can be used to outsource this activity. Or just drop their notes in remote areas.
6. Pressurize IMF to add additional conditionality to the loans given to them or at least do not vote for their loans.
7. Create assets within Pakistan to destabilize Karachi stock market – it is already in a shambles. Withdraw MFN since from 96 they have not given it to us.
8. Cricket and Bollywood are the opium of the Indian middle classes. Both have been adequately manipulated/ controlled by the D-company since the eighties. Chase the D-company money in Cricket/ Bollywood and punish by burning D-assets in India instead of trying to have them auctioned by the IT department when nobody comes to bid for it.
9. Provide for capital punishment to those who fund terror and help in that. We have the division in the finance ministry to monitor money laundering, etc. It is important that terror financing is taken seriously and fully integrated into money laundering monitoring systems and this division is provided with much larger budget and human resources. And it should coordinate with RAW.
10. Encourage and allow scientists/ academicians/ elites of Pakistan to opt for Indian passport and widely publicize that fact since it will hurt their self-respect and dignity. There will be a long queue to get Indian passports — many will jump to get our passport — since they will not be stopped at international airports. Do not give passports to all — make it a prized possession. Make a 10-year “monitoring” period. Let it hurt the army- and ISI-controlled country. This one step will destroy their identity and self-confidence.
11. Discourage companies from India from investing in Pakistan, particularly IT companies, till Pakistan stops exporting its own IT (international terrorism).
12. In all these, it is important that we do not bring in the domestic religious issues. The target is the terror central, namely Pakistan, and if there are elements helping them here then they also should be punished — irrespective of religious labels. If Pakistan is dismantled and the idea of Pakistan is gone, many of our domestic issues will also be sorted out.

Will the Indian elite go for the jugular or just light more candles and scream at formless /nameless political class before TV cameras? It is going to be a long haul and maybe in a decade or so we can find a solution to our existential crisis of being attacked by barbarians from the west. We need to combine strategy and patience and completely throw to the dustbin the “Gujral Doctrine” by that mumbling PM about treating younger brother with equanimity. The doctrine essentially suggests that if we are slapped on both the cheeks we should feel bad that we do not have a third cheek to show.

Such is our strategic thinking in this complex world since our political class is not adequately briefed nor the elite thinks through issues. Better to be simple in our talks and vicious in our actions rather than the other way.

If we want the world to treat Pakistan for what it is then we should start practicing it. Always call it as Terrorist State of Pakistan [TSP] and never have any illusion that it is going to be any different. Completely and comprehensively cut off all our relations with them—Economic/ Cultural/ Sports and all other aspects. Unless we treat them as international disease no other country would. If we are alone let it be.

Dawood Ibrahim funded Bollywood will weep and some asinine jholawalas may complain. South Africa was treated for its Apartheid so should Pakistan for practicing Terrorism as a State policy. Unless we start completely boycotting terrorist Pakistan we cannot ask others to do it. Pakistan is our cancer and unless we are clear how to handle it we cannot expect US and others to deal with it.

Will Corporate India including Electronic/ Print Media start practicing it then we can see results in a few years? One hopes that the elites are listening…

Otherwise, when the next Mumbai attack happens the senile peaceniks may order more candles and try to generate more Asha for the demon.

Note:
1. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.

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R Vaidyanathan

Prof R. Vaidyanathan

Cho S Ramaswamy Visiting Chair Professor of Public policy[CRVCPPP]

Sastra University

An expert in Finance and a two times Fulbright Scholar, Prof. R Vaidyanathan is a much sought after author, speaker and TV commentator on all items related to Money and Finance.

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