Pakistan is facing big economic instability in current situation, huge foreign debts, circular debts and money laundering are the main hurdles to overcome the challenges. Rise in value of Dollar against Pakistani rupee creates more tough circumstances. Government has failed in tax collection and it has also failed to increase the ratio of filers. It is very true that Pakistan is facing toughest time for its economy in era of Imran Khan.
It is also true that previous governments were not serious about economic issues and they just took loans from other countries and did not focus on debts interests which now almost have increased up to $90 billion. Pakistan trying hard to motivate foreign investors in Pakistan and it knows that foreign investment can change the current circumstances.
Many foreign companies visited Pakistan and see the possible opportunities for the investment and return of investment. Few years back, Pakistan was suffering with militancy and wave of terrorism which affected foreign investment very badly and now it is very tough for current government to motivate foreign companies and individuals towards Pakistan.
Government offering several options to foreign companies and ensured them complete security, but the world knows that Pakistan still facing threats which can create disturbance for investors anytime. Although, Imran Khan’s government is doing and taking all needful steps for better economy, but it seems action is not so enough.
In my opinion the steps which government has taken to motivate foreign investors and foreign companies are not enough because we have some bad stories here which affecting other foreign investors and now, they are reluctant.
Few days back I got a story about a big scam of two Pakistanis with a foreigner who extended his business from China to Pakistan few years back. He was working in oil and gas sector. Pakistan guy who mainly did fraud with this Chinese was his partner when they extended their business from China to Pakistan.
Both worked hard and got good results from Pakistan, they had 12 years business and personal friendship and they have worked together in China before coming to Pakistan. In March of 2014, they registered a company with share 50:50; they had some big projects in hand and expecting big amounts from those projects.
In staring they opened their office in Islamabad in 2014 and in May they registered a company in SECP of Pakistan which was extension of their Chinese company; and the names of both companies were similar. Both had 45, 45 percent shares in Pakistani company and they gave 10 percent share to the third person who was brother in law of that Pakistan guy who played main role in scam.
At the same time the company which they registered in China Hong Kong had some projects in some Chinese companies which were working in Pakistani oil and gas sector. Those projects were basically based on the relations of that Chinese guy and his company which was working in China.
The total amount of income from one of projects was $11 Million. The amount was supposed to be shared among three people one the Chinese guy who holds 45 % share, second the Pakistan guy who was basically partner of that Chinese and he also holds 45% share that time and the third person was the brother in law of that Pakistani and he holds 10 % share so the received amount was supposed to be shared equally.
Both Pakistani guys did fraud with that Chinese person when they registered a new Firm not by SECP with the shell/Similar name of company which was registered by SECP in Pakistan and by Government of China, so the companies which were already working with that Chinese guy had no doubt. Furthermore, Both Pakistani guys converted the 45% shares of that Chinese guys into 1% without consent of Chinese. They forged the signatures of Chinese guy and made a new stamp for new Forge Firm. SECP also didn’t ask them that how a person who holds 45% share goes into 1% shares, but it happens in Pakistan. They opened new bank accounts with shell name and received the whole amount in new accounts so that Chinese person lost his 45% shares which were around $4.95 Million.
It was very shocking news for me because that Chinese person was suffering through our judicial system and his case was in Islamabad session court, civil court and high court. While, FIA could also do a lot, but it did nothing. He is still going on all hearings, but we all know the Pakistani judicial system. He has all evidences which are more than enough to prove the other party guilty but who cares in our system.
Government is doing hard to change the attitude of foreign people about Pakistan but who will act for those foreigners who are suffering in Pakistani courts and struggling for justice. I must request to honorable Chief Justice of Pakistan and Prime Minister of Pakistan to take action on such cases and make example to these fraud people so the foreign investors will get positive results.
From this case, these black sheep made money, or even relevant persons get benefits, but it is big loss of Pakistan, it is big loss of Pakistan’s reputation, especially in front of China Brothers and foreigners.
If this case is failed, it is the failure of Justice, it is the failure of Pakistan system, and it is the failure of Pakistani’s Reputation. This case is just one of the cases, but Very Representative, which will create very bad image of our justice and investment environment. Indeed, government is trying hard in improving Pakistan’s image before international community and this case is very important for the image of Pakistan.