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EX CJ Iftikhar Chaudhry's Activism Hurt Investment in Pakistan

RiazHaq

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Haq's Musings: Pakistan's Chaudhry Court Scared Investors Away

Organization of Pakistani-American Entrepreneurs (OPEN) Silicon Valley has just announced a panel discussion featuring Pakistan's former Chief Justice Iftikhar Chaudhry and former attorney general Munir Malik.


Pakistan's Ex-Chief Justice Iftikhar Chaudhry
This discussion is titled "The Pakistani Legal Code And How It Impacts Investors And Entrepreneurs". It is scheduled for 10:15 AM at "OPEN Forum 2014", the organization's annual conference on Saturday, May 10, 2014, at the Santa Clara Marriott in Silicon Valley

If I were asked to moderate this panel, I would not treat it as an abstract discussion of how rule of law impacts investors and entrepreneurs anywhere in general. Instead, I would focus on how Justice Iftikhar Mohammad Chaudhry conducted himself and how his conduct affected the investment climate and the economy in Pakistan during his tenure as Chief Justice of Pakistan.

Foreign Direct Investment in Pakistan:

World Bank's data shows that foreign direct investment (FDI) in Pakistan reached a peak of over $5 billion (3.6% of GDP) in 2007 and then fell sharply in the wake of JusticeChaudhry's reversal of the privatization of Pakistan Steel Mills. FDI has essentially dried up and the Pakistan Steel Mills Corporation has accumulated losses over Rs. 100 billion in spite of multiple bailouts at taxpayers expense. It is currently operating at just 3% of capacity and its monthly payroll adds up to Rs. 500 million, according to Dawn.


FDI as % of GDP in Pakistan Source: World Bank

Canceled Privatization Deals:

Huge subsidies are being given at taxpayers' expense to Pakistan Steel Mills and several other state-owned enterprises which take resources away from more pressing needs for spending on education, health care and infrastructure. In fact, Pakistan Education Task Force Report 2011 reported that "under 1.5% of GDP [is] going to public schools that are on the front line of Pakistan's education emergency, or less than the subsidy for PIA, Pakistan Steel, and Pepco."

Speaking at a recent international judicial conference in Islamabad, Dr. Ishrat Hussain, current dean of the Institute of Business Administration and former governor of The State Bank of Pakistan, said there has not been a single privatization deal in Pakistan since the Supreme Court's 2006 decision voiding the steel mill transaction.

Dr Hussain said that despite fulfilling the legal requirements, the fear that the country’s courts may take suo motu notice of the transaction, and subsequently issue a stay order, deters businesses from investing in Pakistan, according to a report in The Express Tribune. “A large number of frivolous petitions are filed every year that have dire economic consequences. While the cost of such filings is insignificant the economy suffers enormously,” he added.

Crucial Projects Delayed:

Among other projects, Dr. Hussain particularly cited Reko Diq and LNG projects which could not proceed because of judicial activism of Pakistan Supreme Court judges.

The lack of progress on liquefied natural gas (LNG) deal has exacerbated Pakistan's energy crisis. It would have brought in 400 million cubic feet of gas per day to bridge the growing supply-demand gap now crippling Pakistan's economy.

The invalidation of Reko Diq license to Tethyan, joint venture of Canada's Barrick and Chile's Antofagasta, has turned away Pakistan's single largest foreign investment deal to date. The deposit in Balochistan was expected to produce about 200,000 tons of copper and 250,000 ounces of gold annually. Under the deal Baluchistan province would hold a 25 percent stake in the project, with Tethyan holding the remaining 75 percent.

Militants Released:

In addition to activist judges intervention in economic matters, there have also been many instance in which known militants have been released by Pakistani courts. Those released have then committed acts of terror which have also scared away investors, both foreign and local.

Summary:

Dr. Hussain closed his speech by pleading with Pakistan's judges "with all the humility and without sounding arrogant or offending anyone’s sensibilities, that economic decision are highly complex and its repercussions are interlinked both in time as well as space.”

I hope that this opportunity to question the former chief justice is not wasted by an adoring crowd asking him soft-ball questions at the OPEN conference on May 10, 2014. It's important that we, including the honorable judge, do an honest assessment of our past mistakes to learn from them.

Haq's Musings: Pakistan's Chaudhry Court Scared Investors Away
 
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I agree one hundred percent. It is said that road to destruction is always paved with good intentions. I have now seen it happen with the lawyers movement. Many eminent lawyers such as Aitzaz Hassan and Ali Ahmad Kurd have admitted their subsequent disappointment on the TV.

It a pity that Ch. Iftikhar’s photo is hung among the Chief Justices of Pakistan instead being on the floor of the court so that everyone who enters could step on his face.

In my humble opinion, it will take a generation for Pakistan to recover from the damage resulting from actions of this megalomaniac.
 
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Why isnt he the 1 labelled traitor along with the list of others?
 
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one of the reason of 2008 crisis that destroyed a booming industry.
one of the biggest mishaps was steels mills.
pakistan has alone lost over 1 billion dollars in direct losses and 3-4 in indirect.
than riko deq in which just 0.1% of area with just a single block would have fetched 6-7 billion rupees in royalties instead it would be lying waste in deserts for decades to come.
these decisions were second to known only to disastrous nationalization of the 70s that ironically destroyed an economy on which south Korean econmy was based

real mess is when a doctor starts doing descions on econmy or engineering starts treating patients.
instead of court getting opinion from economist, the court just started babbling itself on reko dig.
any body would have said that for country like us that was a sound agreement.

now a nuclear engnr is going to extract gold with his magic wand he just gives annual reports for last 5 years

[quote="Talon, post: 5595709, member: 141155]Why isnt he the 1 labelled traitor along with the list of others?[/quote]

well his son was getting flats from our land lord of bharia town!..:pakistan:
 
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well his son was getting flats from our land lord of bharia town!..:pakistan:
Why?

Donoun ko chuttiyan marni cha hiyea! Son and land lord!

people give free flats to these nakamay lotayray I give free chuttiyan!
 
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I agree one hundred percent. It is said that road to destruction is always paved with good intentions. I have bow seen it happen with the lawyers movement. Many eminent lawyers such as Aitzaz Hassan and Ali Ahmad Kurd have admitted their subsequent disappointment on the TV.

It a pity that Ch. Iftikhar’s photo is hung among the Chief Justices of Pakistan instead being on the floor of the court so that everyone who enters could step on his face.

In my humble opinion, it will take a generation for Pakistan to recover from the damage resulting from actions of this megalomaniac.

Niaz,

This Judge Chaudhry never had good intentions. He was ignorant---he was arrogant---he was illeterate.

You also must know about another fiasco of Judge Ch.-----pak govt got a collection agency in the u s involved to get money out of people who had run away from pakistan and defaulted on loan or stolen money----.

Well---this legal firm was charging an X amount of dollars for their services---the judge says---it is too much ( based on what ) and had the govt cancel the contract.

The problem with the govt was---that it should have either fired the judge, or ordered him to do his job and leave the admin work to the state authorities.

As the state did not do either---they are also a part and parcel of the problem.
 
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