Sugar scam, IMF bailout saw ouster of Pakistani PM’s close aide from inner circle 

In this file photo, Pakistan Tehreek-i-Insaf (PTI) leaders Imran Khan and Jahangir Tareen are seen at a rally in Islamabad on November 30, 2014. (AFP/File)
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Updated 21 October 2020
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Sugar scam, IMF bailout saw ouster of Pakistani PM’s close aide from inner circle 

  • Longtime friends and confidants, Jahangir Khan Tareen and Imran Khan are no longer on talking terms
  • Tareen currently lives at his Newbury farmhouse outside of London in what many see as self-imposed exile

ISLAMABAD: For nearly a decade, of all the friends and confidants in Prime Minister Imran Khan’s inner circle, sugar baron Jahangir Khan Tareen was his closest.
Today, Tareen and Khan are no longer even on talking terms, officials close to both say, as the wealthy businessman and one of the largest sugar producers in Pakistan ponders his political future at a farmhouse outside London.

There is no doubt he is in self-imposed exile, indefinitely. 
Tareen left for London in June this year amid a high-profile investigation into a sugar case that accuses him of being one of the major beneficiaries of government subsidies on sugar exports and of profiting from increasing prices in the local market. 
PM Khan, who in the past had stood by Tareen even when he was barred by the country’s top court from holding public office over corruption allegations, has pushed for an investigation into the scam.

After that, said Ishaq Khan Khakwani, a senior member of the ruling Pakistan Tehreek-i-Insaf party, things got “personal” for Tareen.
But relations between the two leaders began to go sour much before the sugar scam — perhaps just a few months after Imran Khan took oath as prime minister in 2018. 
“When people form governments, there is a lot of palace intrigue,” said Khakwani. “Everyone wants the ear of the ruler. Thus, a tussle begins.”

The first major tussle, it seems, was over an IMF bailout.

Khan inherited an economy in shambles when he came to power, with major financing gaps, a large fiscal and current account deficit, a low level of reserves and an overvalued currency. 

Seeking a bailout from the IMF seemed to be the only solution, and one that Tareen supported. But finance minister at the time, Asad Umar, was opposed to the idea, Khakwani said. 

Lengthy negotiations with the IMF kicked off and dragged on, with no agreement in sight when in April 2019, Umar, himself a close aide to the PM, was replaced as the finance minister in a surprise move. Insiders in the PTI say Umar’s tough talking with the IMF had put Tareen and other wealthy business owners at unease, afraid he would not be able to get the right deal to shore up the economy.

With Umar gone, the IMF approved a three-year, $6 billion loan a few months later, in July.
In an interview to Voice of America, science minister and close PM aide Chaudhry Fawad Hussain claimed it was indeed Tareen who had Umar removed from the finance ministry portfolio. When Umar returned to the cabinet in November as planning minister, Hussain said, the former finance chief launched his own efforts to have Tareen ousted from Khan’s inner circle.
“When Umar returned [to the cabinet],” the minister said, “he put in a lot of effort and had Tareen removed.” 
Umar and Tareen did not respond to repeated requests for comment. 

The final straw came when the sugar scam broke, and Khan personally pushed for a probe, and many government officials began to publicly distance themselves from Tareen.
“An inquiry is okay if it probes all 88 sugar mills in the country,” Khakwani said. “But only Tareen’s office was raided. His staff was humiliated.”
Come 2020, the wealthy businessman was seen as a liability that would hurt the PTI’s anti-corruption mantra and thus he was cast out of the prime minister’s palace, analysts say.
“It [the sugar report] was the government’s first major scandal where the government was accused of wrongdoing, in which those connected to the government were seen to have benefited,” political talk show host Arifa Noor said. “So the prime minister was criticized for his government being guilty of financial impropriety.”
Hamid Khan, a founding member of the PTI and a senior lawyer who is now largely estranged from PM Khan, said the PTI leader should have distanced himself from Tareen much sooner:

First, when an internal party report in 2015 demanded that Tareen be stripped of his post as PTI general secretary over his alleged role in rigging intra-party polls; and second, in 2018, when the Supreme Court declared Tareen “dishonest” and barred him from holding public office over corruption allegations.
But both times, Khan stood by Tareen.
“He always protected him,” Hamid Khan told Arab News. “Back in 2015, Khan told a gathering of the party that he cannot leave these people.”


Traders estimate $18 million losses as rescue operations continue after Karachi mall inferno

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Traders estimate $18 million losses as rescue operations continue after Karachi mall inferno

  • DNA testing underway to identify victims still missing after blaze destroys 1,200 shops
  • Emergency services dispatched on Tuesday to another fire at Karachi’s New Vegetable Market

KARACHI/ISLAMABAD: Karachi’s business community on Tuesday estimated losses of about $18 million after a devastating fire tore through a major shopping plaza in the city, with rescue teams continuing search and recovery operations at the site amid fears that more victims may still be trapped under the debris.

The fire broke out late Saturday at Gul Plaza, a multi-story shopping complex in Karachi’s congested Saddar area, spreading rapidly through the building, which has over 1,200 shops, and trapping workers and shoppers inside. Recovery efforts have been slowed by severe structural damage and fears of collapse, officials said.

Dr. Summaiya Syed, Karachi’s chief police surgeon, said 20 deaths had been confirmed so far, with identification still underway for several bodies recovered from the site.

Karachi has a long history of deadly fires in commercial buildings, often blamed on overcrowding, aging infrastructure and weak enforcement of fire safety regulations in a city of more than 20 million people.

Atiq Mir, president of the Karachi Tajir Ittehad, which represents around 600,000 small traders across the city, said assessments by traders now put the financial damage from the Gul Plaza fire at nearly Rs5 billion ($18 million), far higher than initial estimates. 

“The plaza had at least 8000-10,000 laborers and then those affiliated to them. We can easily say nearly 10,000 families have been affected by this fire,” Mir told Arab News. 

He urged the government to announce a compensation grant of at least Rs5 billion ($18 million) and said the Karachi Chamber of Commerce and Industry would be the most appropriate body to oversee transparent distribution of relief funds.

On Monday, the provincial government of Sindh said it would provide Rs10 million ($36,000) in compensation to the family of each person killed in the Gul Plaza fire. 

Chief Minister Murad Ali Shah also announced the formation of a joint committee involving provincial officials and the Karachi Chamber of Commerce and Industry (KCCI) to assess losses and oversee rehabilitation of affected traders. He said authorities were exploring temporary arrangements to relocate 1,000 to 1,200 shops so businesses could resume operations as quickly as possible.

Citing past precedents such as the Bolton Market arson and the Cooperative Market fire, Shah said similar compensation and recovery mechanisms had previously helped traders rebuild their livelihoods and would guide the current response.

On Tuesday, Karachi Mayor Murtaza Wahab said heavy machinery had been deployed to clear debris and allow access to Gul Plaza’s basement, where search teams believe victims may still be trapped.

“Under all circumstances, the rescue operation must be completed and the search for victims further accelerated,” Wahab said during a visit to the site, according to a statement. 

“All departments of the Karachi Metropolitan Corporation will remain on alert until every missing person is traced and the operation is concluded.”

As rescue operations intensified at Gul Plaza, emergency services were dispatched to another fire at Karachi’s New Vegetable Market, officials said, underscoring persistent safety challenges.

Deputy Mayor Salman Abdullah Murad said fire brigade units and Rescue 1122 teams were immediately deployed and the blaze was brought under control.

“The fire is under control and there is no danger,” Murad said, adding that the affected area had been secured and cooling operations were underway.

Police officials said no casualties were reported in the vegetable market incident.