However, he said, the NAB, has crossed the line by putting its hand on the independent media. He said that the government never tolerates criticism. Speaking in Geo News programme ‘Aapas ki Baat’, he said the government’s performance is not improving that is why it pressurises those who criticize it. He said the arrest of Editor-in-Chief of Jang/Geo Media Group Mir Shakil-ur-Rahman is an unprecedented step taken by NAB.
Bilawal said the role of the NAB is very disappointing and he believes that it will be used for political engineering and pressuring the critics in future as well. He said harassing the media owners in old cases is condemnable. He demanded the government to release Mir Shakil-ur-Rahman immediately. He said democracy cannot function properly without independent media.
The PPP leader said if Prime Minister Imran Khan has big heart, then he must not confront with the political opponents and independent media. He said putting opposition into jails depicts a fascist and dictatorial mindset.
About the FIA report on sugar and flour crisis, Bilawal said that in normal conditions, the opposition would seek resignations from those in power, but in the current circumstances, the whole focus should be made on combating the challenge of coronavirus. He said he would not repeat what the PTI used to do when it was in opposition i.e. seeking resignations every now and then even over fake reports. He said the government should fully focus on coronavirus handling as people’s health comes first than other considerations.
3 comments:
People say,Y is the sugar industry run by mafias and politicians ?
Y ?
1st people have to understand that the sugar industry is based on the thesis,that cane is the easiest and highest risk adjusted return,for the farners – and to keep farners from starting a Tahrir or joining ISIS. Hence,over supply of cane and over-production of sugar,is an accepted reality of cane farming,in Pakistan
This ensures perpetual raw material supply for the mill,and a PASS THROUGH of all costs to the state – on a defacto basis.Defacto basis,is key,as there is no contractual arrangement for the pass through – which is a threat to the economic security of the state,as the mill owner can create shortages,spikes and supply and payments crisis and easily manufacture repetitive, but ingenious reasons for debt waivers,tax reliefs,export subsidies and drawbacks.
Excess cane production and sugar,is the disaster scenario for the Pakistani state.If there is a bad crop,international sugar prices would not rise,to an extent,to make imports on a duty free basis, costlier than the NSR to the sugar mill. In fact,the imported sugar could be sold at a profit to dealers,to more than offset the indirect tax revenue earned, by the state,on cane purchases by mills (mandii/purchase tax) and sale of sugar by mill (excise and sales and VAT tax)
Y is the mafia required in sugar ? dindooohindoo
Phase 1
To start strikes in mills of competitors
To divert raw material supplies of competitors
To set fire to bagasse stock of competitors
To monopolise truckers for mill logistics
To choke off the logistics for the mill competitors
To break unions in workers and truckers
For the above,a mill owner needs the support of the police,mafia and the neta
Phase 2
To manipulate raw material supplies,as under:
To downgrade and reject materials purchases
To delay purchase payments w/o delayed interest
To pick and choose cane suppliers
To tamper quality,moisture and weighnent tests
Using dummy names to route purchases from captive plantations
Route farmer purchases,as captive plantation purchases
To run a racket of farmers cane bills discounting
To organise dharnas/riots/logistics blockades, with the aid of farrners
To charge financial conversion charges for payments to farrners in cash
For the above,a mill owner needs the support of the police,mafia and the neta
Phase 3
To recover the costs of fire insurance and LOP insurance, there are accidental fires in bagasse stocks – once in 5 years, to recover,in bogus claims – the aggregate premiums paid over 5 years
Phase 4
To con the state in export subsidies and drawbacks
To con the state w.r.t CDR/OTS with banks
To con the state w.r.t capital and interest subsidies
To tamper the power consumption meters of CPP and power from grid – which is the only forensic proof of production
Phase 5
Bogus exports to eat up the subsidy and drawbacks – from land dry ports and sea ports
Routing exports proceeds on actual and bogus exports,via hawala and other modes
Manipulating cost,production and stock records to inflate costs,make off the books sales and purchases and hide stocks of finished goods
Selling bagasse in cash,instead of selling power to the grid
Creating shortages and spikes in prices of raw and processed/refined sugar Make fake cash purchase bills to generate cash for the sugar mill
For all the above,you need the mafia and the neta, AND also, since the farnmers are voters for the netas.Since the netas cannot outsource the political risk of the cane souring and payments,to a private party – and that,it is a no-loss, monopoly business,the netas are in the sugar mills,and will stay so,forever.
The Solution to the Sugar Corrupti-demic !
What is the solution to the Pakistani Sugar Crisis ?
Some Basic Facts
The Sugar Mills make money at the highest capacity,and the lowest material cost.For that,there haas to be overproduction of cane - and farmers have to be pampered and brainwashed,to get the "best" cane prices.High cane prices,are of no impact for the mill,as the cabe price,is a defacto pass through,to the state. dindooohindoo
In other words,the excess sugar produced,from the excess cane produced - will HAVE TO BE exported - with the subsidy and the drawback,at the cost of the state.In addition,the cane payments are made from working capital loans from banks - and the loans would be liquidated from the export and domestic sale proceeds - and so, the NSR from exports and domestic sales has to be profitable.Otherwise,the mill is bust and the bank loan,is an NPA,and millions of cane growers have no buyer.
Solution 1
The state has to rework the subsidy.The mills have availed of the advantage of the maximum capacity utilisation, arising out of a bumper cane crop.Hence,the cost of the export stock,should be computed based on the "Marginal cost of Production and
Direct costs", upto sale.The difference of this,w.r.t. the FOB Export rates - should be the subsidy.
whether the mills should get a Profit on the Marginal Cost - is a separate issue - as the economies of scale have already accrued to the mill owner,for the domestic sugar sold.In the alternative,the mills can be paid a service charge,per ton,as they have acted as an NGO - to service the farmers and use their cane,and have in effect transmitted the subsidy,defacto to the farmers.
Solution 2
In the current scenario,there is a time limit for exports - as the working capital bank loans,have to be liquidated - for payments for fresh stock purchases.The precise dates are known to traders and punters,all over the world - as the patterns
of behavior of a baboo,in the state - as to,steps to liquidate the stocks - are predictable.
Hence,the mills have to be provided additional unsecured credit,for fresh cane purchases - and a central state agency should sell sugar futures,every quarter,with or without selling options, and give delivery where the futures and the options are out
of the money,or where the contango on futures and option premiums,added to the futures price,is closest to the Price to be paid,to the mills
The nation will,at least, get the maximum NSR on Sugar exports - and the subsidy loss,will be minimised.
If the 12 month futures contango or option premium, is in excess of the working capital cost of the stock,the state can hold some of the sugar stock,as the net working capital cost is nil or negative.If the futures and options turn a loss,the state
can provide stock delivery.There would be several such combinations.
Solution 3
The farners have to be shifted from cane farming.Instead of giving subsidies to mills,for export stocks - which represent,excess cane production - the subsidies can be given to farmers directly,to shift to other crops.The subsidies can be in the form of free power,seeds,fertilsiers,pesticides,crop insurance,supplements and implements.In addition,value added factories for the new crops,can be set up near the crops - with subsidies.As time passes,the viability of the crops will increase,and the subsidies will be nil
It is possible that the NSR on exports + export subsidy - Marginal cost of Production and sale of export sugar, is more than the financial profit,earned by the cane grower.
In such a case, a subsidy equal to the financial profit,which COULD be earned from the cane sales - can be paid,as a subsidy,to the cane farmer - NOT TO GROW THE CANE.
Solution to the Sugar Crisis of Pakistan - Part 2
Solution 4
Each crushing season,the state should calculate the excess stocks expected over 1 year based on demand and current stocks.The current production which will be in excess of the safety and base and emergency stocks - is the likely surplus stock
to be exported.
70% of the expected surplus stock - should be transported to state godowns,on a quarterly basis - by the cheapest mode - which is rakes.The state godowns can be near or inside the ports (warehouses),or near or inside the dry ports.
All exports should be made from STATE GODOWNS only. This will make sure that there are no bogus exports,and also,there can be no money laundering.
Solution 5
A locust,is a drone with AI,and a perpetual battery of a few years,and the drone can clone itself.The cane production has to be reduced.The state can use Bio war tools to destroy crops in certain regions and certain strains - and this is surely being done,in many parts of the world.The loss to the farner,is the financial opportunity to the farmer foregone - which has to be compensated by the state.Loss to the sugar mills need not be compensated - but the interest on loans,can be waived - and banks,can be compensated,for the interest loss.
The aggregate compensation to the farmers and mills, will be less than the subsidy and drawbacks on exports,interest and storage cost on export stock,and storage losses of export stock.dindooohindoo
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