DUBAI // The president Asif Ali Zardari and other ministers facing corruption charges in Pakistan should resign and clear their names so that political stability can return, a former president of the South Asian country said.
Farooq Leghari, who was the president more than a decade ago, described Mr Zardari as an "isolated leader" and claimed that the best thing for Pakistan was for him to gracefully resign.
"He has put himself in a position where he can't survive politically. It's a question of whether he will go soon or be shamed by a thousand cuts of the sword," said Mr Leghari in an interview with The National.
Mr Leghari was on a private visit to Dubai to meet his daughters, who are based here.
Earlier this month, Pakistan's Supreme Court struck down an amnesty that would grant Mr Zardari and his cohorts immunity from prosecution for corruption.
The National Reconciliation Ordinance was declared null and void, thereby leaving the president and other senior politicians open to a host of charges.
Mr Zardari, who was chosen as the leader of Pakistan after the assassination of his wife, Benazir Bhutto, has accused the opposition of a conspiracy to bring him down along with his Pakistan People's Party. "The leaders should accept the court judgment. How can you remain a minister with such charges against you?" Mr Leghari asked.
"Democracy can't survive with such massive corruption going on."
Mr Leghari, 69, was elected president of Pakistan in 1993 during a time when Mrs Bhutto was in power.
His controversial tenure saw him dismiss his own government on charges of corruption and violation of the constitution. He also ended the term of the prime minister Nawaz Sharif on similar charges.
"I had warned all of them against corruption," said Mr Leghari, who alleged that two major parties in Pakistan led by Mrs Bhutto and Mr Sharif had a history of corruption.
"It was as if one party was learning from the other about corruption and not making the mistakes the other did," he said.
However, Mr Leghari himself received his fair share of accusations. He was often accused of being power-hungry, which finally led to his resignation as president in December 1997.
The power struggle during his tenure led to a virtual paralysis of the government and severe economic strains on the country. He later left active politics, claiming poor health.
Pakistan has faced repeated attacks by suicide bombers and militants. Mr Leghari alleged that the "indigenous Talibanisation" was a product of a deterioration of governance.
"When you are involved in corruption you pay scant attention to problems of the people," he said.
The country is leading a US-backed war against al Qa'eda and the Taliban at its border with Afghanistan. Media reports say that in Pakistan, militant attacks have killed more than 2,700 people since July 2007.
Mr Leghari said drone attacks by the US in the border regions are creating more terrorists. "The drone attacks are very unpopular in Pakistan. The drones increased in intensity after Zardari came to power and they have increased even more during President Obama's period.
"Many times these drones have hit people who are unrelated; collateral damage has been enormous."
He added: "In tribal areas, if someone feels he is being wrongly attacked or killed then it's an article of faith with them that they must take revenge.
"It is building up groups that are opposing the US."
He defended Pakistan against claims made by neighbouring India of a government-sponsored terror attack against them. After the November 2008 attacks in Mumbai, the old rivals accused each other of foul play. "I have very little sympathy with this government, but neither the government nor any of its agencies were involved with creating trouble in India. It's against Pakistan's basic interest."
The Mumbai attacks also resulted in immense international pressure on Pakistan to act against groups operating from its territory.
pmenon@thenational.ae
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Results:
CSIL 2-star 145cm One Round with Jump-Off
1. Alice Debany Clero (USA) on Amareusa S 38.83 seconds
2. Anikka Sande (NOR) For Cash 2 39.09
3. Georgia Tame (GBR) Cash Up 39.42
4. Nadia Taryam (UAE) Askaria 3 39.63
5. Miriam Schneider (GER) Fidelius G 47.74
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital