Geo-Political Think Tank

     

 

Report Analysis

Strong Economic Medicine for Pakistan

Pakistan has a federal structure based on federal provincial transfers. Under a federal fiscal structure, the central government transfers financial resources to the provinces, with a view to supporting provincial based programs. When these transfers are frozen as occurred in Yugoslavia in January 1990, on orders of the IMF, the federal fiscal structure collapses:

"State revenues that should have gone as transfer payments to the republics [of the Yugoslav federation] went instead to service Belgrade's debt. The republics were largely left to their own devices. The budget cuts requiring the redirection of federal revenues towards debt servicing, were conducive to the suspension of transfer payments by Belgrade to the governments of the Republics and Autonomous Provinces.

In one fell swoop, the reformers had engineered the final collapse of Yugoslavia's federal fiscal structure and mortally wounded its federal political institutions. By cutting the financial arteries between Belgrade and the republics, the reforms fueled secessionist tendencies that fed on economic factors as well as ethnic divisions, virtually ensuring the de facto secession of the republics.

It is by no means accidental that the National Intelligence Council- CIA report had predicted a "Yugoslav-like fate" for Pakistan pointing to the impacts of "economic mismanagement" as one of the causes of political break-up and balkanization.

"Economic mismanagement" is a term used by the Washington based international financial institutions to describe the chaos, which results from not fully abiding by the IMF's Structural Adjustment Program. In actual fact, the "economic mismanagement" and chaos is the outcome of IMF-World Bank prescriptions, which invariably trigger hyperinflation and precipitate indebted countries into extreme poverty.  

Pakistan has been subjected to the same deadly IMF "economic medicine" as Yugoslavia: In 1999, in the immediate wake of the coup which brought General Pervez Musharaf to the helm of the military government, an IMF economic package, which included currency devaluation and drastic austerity measures, was imposed on Pakistan. Pakistan's external debt is of the order of US$40 billion. The IMF's  "debt reduction" under the package was conditional upon the sell-off to foreign capital of the most profitable State owned enterprises (including the oil and gas facilities in Balochistan) at rockbottom prices. 

Musharaf's Finance Minister was chosen by Wall Street, which is not an unusual practice. The military ruler (Musharaf) was appointed at Wall Street's request, a vice-president of Citigroup, Shaukat Aziz, who at the time was head of CitiGroup's Global Private Banking.

There are obvious similarities in the nature of US covert intelligence operations applied in country after country in different parts of the so-called "developing World".  These covert operation, including the organization of military coups, are often synchronized with the imposition of IMF-World Bank macro-economic reforms. In this regard, Yugoslavia's federal fiscal structure collapsed in 1990 leading to mass poverty and heightened ethnic and social divisions. The US and NATO sponsored "civil war" launched in mid-1991 consisted in coveting Islamic groups as well as channeling covert support to separatist paramilitary armies in Bosnia, Kosovo and Macedonia.

The National Intelligence Council and the CIA have envisaged a similar “civil war” scenario for Pakistan.  From the point of view of US intelligence, which has a longstanding experience in abetting separatist "liberation armies", "Greater Albania" is to Kosovo what "Greater Balochistan" is to Pakistan's Southeastern Balochistan province. Similarly, the KLA (Kosovo Liberation Army) is Washington's chosen model, to be replicated in Balochistan province.

 

US-War propagandas

 

Under the Bush administration, the CIA continues to support several Pakistani based Islamic groups. The Islamic groups created by the CIA are also intended to rally public support in Muslim countries. The underlying objective is to create divisions within national societies throughout the Middle East and Central Asia, while also triggering sectarian strife within Islam, ultimately with a view to curbing the development of a broad based secular mass resistance, which would challenge US imperial ambitions.

This function of an outside enemy is also an essential part of war propaganda required to galvanize Western public opinion. Without an enemy, a war cannot be fought.  US foreign policy needs to fabricate an enemy, to justify its various military interventions in the Middle East and Central Asia. An enemy is required to justify a military agenda, which consists in " going after Al Qaeda". The fabrication and vilification of the enemy are required to justify military action. The existence of an outside enemy sustains the illusion that the "war on terrorism" is real. It justifies and presents military intervention as a humanitarian operation based on the right to self-defense. It upholds the illusion of a "conflict of civilizations". The underlying purpose ultimately is to conceal the real economic and strategic objectives behind the broader Middle East Central Asian war. 

In the Pakistan’s case, the same US strategy will impose that Osama is inside Pakistan or Al Qaeda is operating in Pakistan (Northern areas). It will give a solid reason for western media to attack on Pakistan directly. Pakistan and its armed forces will aggressively punish by US and NATO forces in the charge of Al Qaeda and Islamic militants inside the country in between 2012 – 2015 due to failed state.

Plans for Military Intervention inside Pakistan

 

The US military’s Special Operations Command for deploying Special Forces troops in Pakistan’s frontier regions for the purpose of training indigenous militias to combat forces aligned with the Taliban and Al Qaeda has drawn up plans the proposal would “expand the presence of military trainers in Pakistan, directly finance a separate tribal paramilitary force that until now has proved largely ineffective and pay militias that agreed to fight Al Qaeda and foreign extremists.”

American military officials familiar with the proposal said that it was modeled on the initiative by American occupation forces in Iraq to arm and support Sunni militias in Anbar province in a campaign against the Al Qaeda in Iraq group there.

According to the Times report, skepticism that the same strategy can be adapted to the deteriorating situation in Pakistan centers on “the question of whether such partnerships can be forged without a significant American military presence in Pakistan.” The newspaper adds, “it is unclear whether enough support can be found among the tribes.”

 

 

   


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