The following is a translation of the lecture notes for the last speech that Imran Yousafzai delivered on the occasion of the Day of the Fall of the Khilafah "Caliphate", 28 Rajab, before his abduction by government agencies. It is to be featured as an article in Issue 2 of Nussrah magazine inshAllah. Imran Yousafzai is the Deputy to the Spokesman of Hizb ut Tahrir in Pakistan. Upon release of this transcript, his whereabouts are unknown, over a fortnight after his kidnapping on 12 July 2011.

Is Pakistan's economy dependant on western aid?

Imran Yousafzai

With increasing debate in the media over severing alliance with the US, agents of the US embassy also known as ‘contacts,' in the language of the embassy cables, have started a full blown campaign to convince the masses that Pakistan is addicted to the foreign ‘aid' (loans) and it will be bankrupt without US loans. Some time ago, an ‘intellectual' famous for talking in terms of ‘facts and figures' set about proving this from the figures of Pakistan's trade deficit. Some of our friends who are, strictly speaking, not included in the category of ‘contacts,' but still have a strong belief in the capitalist system and so puts them close to them, are also talking in this manner. These friends try to scare us about the ‘wrath' of US by citing the dependence of our exports upon Western countries and the import of oil from the international market. Now, prior to discussing this topic, we will look at the economy of Indo-Pak before the arrival of the British and their capitalist system, in an attempt to look at the issue in a proper context.

Prior to the arrival of the British and their capitalist system, the sub-continent was the golden goose of the world and the world's largest economy. It was the region whose spices and gold led Columbus to discover the American continent. It was the region in which the assets of one citizen, Abdul Ghafoor, were more than the assets of the whole East India Company. The Jughat Seith family of Bengal owned more wealth than the entire wealth of the Bank of England. And the war booty of the War of Pilasi (1757) was more than the whole GDP of Europe. In that era, the soldiers of Portugal, France and England would desert their army to join the army of the Subcontinent for better pay and perks. Capt. Alexander Hamilton wrote that in the era of Muhammad Shah Tughlaq (1325-1351 AD) - not marked as a very memorable age - there were 10,000 schools/colleges in Delhi alone, with seventy Bimaristan (Hospitals). In Bengal there were 40,000 schools/colleges, equivalent to a school for every 400 of the population. Ibn Batuta writes that there is a small place in the city of Bombay called Hoaz. The people of that area followed the Sha'fai school of thought. There are 23 schools/colleges for men and 13 for women. And there is not a single woman in the whole locality who has not memorized the whole Quran-e-Kareem. Till 1880, the world's largest steel industry and the largest naval fleet manufacturing facility was in the Subcontinent, where the British would built there naval fleets. What could be a better description of the prosperity of this Subcontinent than the statement of Lord Macaulay which he delivered in 1835 in British parliament. He said; ""I have traveled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such caliber, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage..."

Pakistan is part of the same region. Its agricultural land produces the same produce, indeed with greater yield than before. The residents of this area are as hardworking, studious and skilled as they were before. This land is rich in rivers and streams. More hidden treasures have emerged, such as abundant minerals and sources of energy. Thus everything from the past is present until now. However, a curse has been imposed upon this land. A burden that has reduced its people to beggars and this land is no more fulfilling the needs of the people. This curse, this burden, is the colonial capitalist economic system which has accumulated the resources and wealth into a few hands, majority of which are the colonial hands, and deprived the vast majority of even two meals a day. Our corrupt and agent rulers are the product of this very system. The root of the problems is the system. So, let's have a cursory look at the resources of Pakistan so that we can judge; where have this system led us to.

Pakistan has a population of 180 million out of which over 60% are below the age of 25. This is the world sixth largest population and is more than the German and French populations combined. Our land area is over 0.8 million square kilometers, It is almost as much as France and Britain combined. Pakistan has 1046 kilometer coast line which rivals the coast line of major powers. With the worlds tenth largest labor force, this country has an ideal strategic location and ideal geography. Allah SWT blessed Pakistan with some of the world's tallest mountains, large fertile plains and vast arid deserts.

Pakistan has abundant energy resources. The estimated value of the Thar Coal deposits is 25 trillion dollars, 420 times the value of all foreign loans. Recently, survey reports of one of the allotted sections in Thar coal mines further strengthened these estimates. This section has been awarded to the Pakistani company Engro. The 184 billion metric ton coal deposits are spread over an area of 9,000 square kilometers. The energy value of these coal mines are more than the combined oil energy of Saudi Arabia and Kuwait. Recently there have been some promising gas reservoirs discoveries, with one tight gas reserve at Sui, Balochistan estimated to be 100 trillion cubic feet. This reserve was deliberately kept hidden by the government of Pakistan, a fact testified by Petroleum Minister Dr Asim Hussain in the National assembly on 20^th June, 2011. Approximately, 215 trillion cubic feet gas reserves are expected to be found in the southern Balochistan and coastal areas.

Regarding minerals, Pakistan has 74 million ton of aluminum, 500 million ton of copper, 46 million ton of Zinc, 600 million ton of Iron, 350 million ton of gypsum, 22 million ton of Phosphate, dozens of ton of silver, while there is no accounting possible of the marble, precious stones and building stone. In Saindak copper project alone, there is 412 million ton copper ore, in which a foreign company is working on 78 million ton ore. Reko Dik gold mines are included in the world largest gold mines and the estimated worth of the gold, increasing rapidly, in all its blocks is 500 to 3000 billion dollars. Accurate figures are not available due to the collusion of the government with the foreign companies and the cheating practices of such companies.

Pakistan's agricultural potential is no less. Pakistan's irrigation system is the world's largest, three times more extensive than that of its agricultural rival Russia. Our wheat production, 24 million metric tonne, is more than that of the entire Africa, which stands at 20MMT and equals that of South America. This is despite the fact that our land per acre yield is only 2.2 ton. The yield in Indian Punjab is 4 ton, Mexico 5.5 ton and Western countries have much higher yields due to superior farming techniques. Notably, currently 40 percent of Pakistan's cultivatable land is not cultivated. Pakistan is ranked 1^st in the production of ghee, refined butter, 2^nd in chick peas, buffalo and buffalo milk, third in okra production, 4^th in cotton, apricot, goat milk, mangoes, 5^th in  dates, onion, various spices and sugarcane, 6^th in pulses, 7^th in sesame seed, 8^th in Cauliflower, 9^th in oilseed, spinach and wheat, 10^th in goat meat production besides being within the top 20 in a wide variety of vegetables and fruits, eggs, tobacco, jute, lentils and rice.

Pakistan's seven thousand PhD's and approximately two million scientists and engineers have the full technical know how and capability of deriving benefits from these resources to the Ummah.

Despite so many resources bestowed by Allah (swt) - more than that which some of the major world powers possess - the capitalist system has turned us into a nation of beggars. This system treats every nation the same way, wherever it is implemented. Africa, a success story of prosperity under Islamic rule, has been forced by the capitalist system to bow in front of poverty and hunger. Despite the loot and plunder of the resources of the world by the Western powers through direct and indirect colonialism, this system could not satisfy even the basic need of the people of their countries and a significant portion of their population still lives below the poverty line. For example, 37 million people in the US live below the poverty line.

These facts and figures are enough to prove that not only do we have enough resources, rather, we have the full potential to sustain another country of our size and even more. It is obvious that we are neither dependant on any other country nor at the mercy of the coffers of others. As per the current year budget figures, Pakistan will receive 287 billion rupees in total as foreign loans and aid whilst we are going to pay out a total of 319 billion rupees in debt services, i.e. foreign loan principal repayment of 76 billion rupees and a staggering 243 billion rupees interest (Riba) to foreign countries and institutions. This clearly manifests that these foreign powers and institutions are living on our money and not the other way roudn. And if we didn't have to pay the loans and interest, we would not need any loan to meet our current expenditure.

As far as the issue of linkage of our export to Western markets is concerned, we export almost 22% of our goods to the US. Not because of any benevolence or favor from the US government, rather because they are the best quality with the lowest price which America can not find anywhere else. It is the US and EU that have time and again blocked Pakistan export under one or another pretext like child labour, environmental preservation etc. And the Pakistani economy has successfully sustained such pressure in the past.

Now let's move to the import of oil, which our friends never forget to mention. To remind our friends, Pakistan does not receive oil as charity. Pakistan pays the full market price in the same manner as US import 54% of its oil needs from the international market. Again to remind our friends, the total oil reserves of the Muslim world are 844 billion barrel in comparison to the 45 billion barrel of the non-Muslim world. 7 out of 10 of the word's largest oil wells are present in the Muslim world. Moreover, in case of oil blockade on Pakistan, majority of the countries of the world would be in trouble as the world largest oil reserves and oil sea routes are in Pakistan's backyard, the Persian Gulf and Straight of Hurmuz. And at  the very least, Pakistan Navy and Air Force are more powerful than Somalian pirates, is that not so?!!

Our economy is in deep crisis because of the colonial capitalist policies. On top of that is the corruption that comes as a natural package with democracy. As the legislative assemblies in a democracy provide a legal and legitimate way of corruption in the order of billions of Rupees, the top corrupt and robbers use the ladder of democracy to reach the legislative assemblies, after removing every obstacle in their way. Once there, these corrupt "representatives" engage in multiplying their fortunes through the policy forming, law making and other perks that come with legislators fulfilling their "sacred" obligation. None of the conditions like being pious, practicing Muslim, graduate or anything else stops them from coming into assemblies. These few corrupt, present in every nation become the legal root of corruption by using the universal ladder of democracy. It is this legal corruption that is causing 400 billion rupees losses to a handful of national corporations every year. American military operations increased our defense spending from 450 billion rupees to 800 trillion rupees. According to the special appendix of Pakistan's Economic survey (2010-11), in just one year, this American war has caused damage of 17.8 billion dollars (1528 billion rupees) to the Pakistan economy. What an irony that America becomes the owner of our sovereignty through the paltry sum of 1.5 billion dollars "aid"! According to this year's budget, Pakistan will pay 1000 billion rupees in interest over national and international loans. Because of the resistance of democratically elected representatives, Pakistan is deprived of at least 300 billion rupees of agriculture tax since most of them are the landlords and they prefer imposing GST on already deprived people to imposing tax on agriculture of the like of Kharaaj and Usher. Thus, this corruption, that is bundled within democracy, the American war and the interest on loans together is costing us more than 3,500 billion rupees every year, which is more than our annual budget. This deficit can easily be removed by an Islamic Khilafah "Caliphate" state in next to no time. This is another proof for the fact that separation from US alliance and the establishment of an Islamic state will take Pakistan on the path of development and prosperity rather than difficulties.

The Islamic Khilafah "Caliphate" state will transform the vast resources of Pakistan into an enormous power and prosperity for the Ummah through the universal Islamic ideology instead of converting them into a ‘resource curse'. Islam's injunctions on public properties ensure that the minerals and energy resources are available to the public and economy at cheap prices, rather than exposing them to exploitation by multinationals. Islam forbids giving the ownership of these resources to the hands of individuals, companies or the state. Thus, these resources are used for the combined well being of the public. Islam removes all indirect taxes thus freeing the hands of people to spend. This results in public satisfaction, increase in spending and an improvement in economy. Islam has the full capability to bring about an agricultural revolution in Pakistan through its extraordinary agricultural laws. With these reforms, there is a great incentive for reviving a barren land i.e. obtaining the ownership title. Similarly, the land is taken back from the one who doesn't cultivate it for three years. Declaring the leasing of land for agriculture forbidden, Islam smashes the feudal system to ruin. These reforms will increase the production many fold in a few years and thus poverty will automatically reduce besides making Pakistan a great agricultural power. Islam makes the currency backed by gold and silver and this eliminates the US influence over the financial aspects of our economy and this, coupled with the end of fractional reserve banking, will kill inflation as it ties monetary supply to actual wealth, gold and silver. By removing, interest, gambling, prize bonds, pyramid schemes and stock exchanges money is redirected towards the real economy and with a great industrialization policy based upon establishing military superiority, we can march towards self sufficiency in critical matters.

Thus it is obvious that the withdrawal from the US crusade and the establishment of an Islamic Khilafah "Caliphate" state will become the basis of Pakistan's prosperity. The Economic Survey of Pakistan released on 8^th of June, 2011 is an open admission of the failure of the government and the system. Confessing the destructive role of the American war, the government states "Pakistan's economy is under pressure of the War on Terror intensifying for last four years in Afghanistan. Since 2006, the War has spread like a contagion into settled areas of Pakistan that has so far, cost the country more than 35,000 citizens, 3500 security personnel, destruction of infrastructure, internal migration of millions of people from parts of northwestern Pakistan, erosions of investment climate, nose diving of production and growing unemployment and above all brought economic activity to a virtual standstill in many part of the country. Pakistan had never witnessed such devastating social and economic upheaval in its industry, even after dismemberment of the country by direct war." Thus the government confesses that this war is pulling Pakistan back into the Stone Age, a Pakistan with no electricity, no gas and no water. Preventing Pakistan from going back to the Stone age was the excuse given by Pervez Musharraf for joining this war, what an irony! The Economic Survey of Pakistan further adds; "The conclusion was that the War not only caused serious damage to the economy, but also to the social fabrics of Pakistan. Obviously, continuity of War will continue to bleed the economy and society of Pakistan". An inter-ministerial and inter-provincial committee was formed to estimate the losses Pakistan faced due to this war. Economic survey of Pakistan presenting the conclusion of this committee say;" During the last 10 years the direct and indirect cost of war on terror incurred by Pakistan amounted to $ 67.93 billion or Rs.5037 billion." The government confession proves that the continuation of this war will annihilate any remaining economy of Pakistan. The Economic Survey summarizes the whole sorry tale of this war in two sentences; "Pakistan became more insecure in its efforts to make the world a safer place to live." and "Pakistan economy needs an early end to this war."

The above arguments are enough to prove that this land has always been a prosperous land and the potential it has is increasing day by day instead of decreasing. However, a curse is imposed on this land, i.e. Capitalism. Brought here by the English and later implemented by the English and American agents for over six decades. this capitalist system has served the colonialist and their agents well, whilst the common man is not even able to make both ends meet. The colonialist war and colonialist policies have made matters worse for the Ummah. The time is ripe for the People of Power to rid the public of this cursed system and its guardian agents so that this land can open its treasures for the Ummah. This will turn the US war back onto US. Indeed, this is our only recipe for survival, surely only in Islam lies the Muslims' dignity and success.

Superpowers posses certain features that evoke both respect and fear of people towards them. For a long time, the USA has been the leading power which embodied a set of excellent features. Its dominance became clear especially after the collapse of the Soviet Union. The collapse of Soviet Union entailed the decrease of its role in the space that was followed by the ruination of Mir space station which had been an unequalled achievement. This collapse made the USA the leader of the international union in the space and created the ISS.

After examining the Law No. 24 of 2004 in dept about national social security system, HTI conclude that 

1. The law has changed the government obligation of social security to people obligation and ‘social security' to ‘social insurance'. Whereas, it is clearly different between ‘Social Security' and ‘Social Insurance'. Social Security is part of Government obligations and people rights. While, in Social Insurance people are obligated to pay premium for themselves. That means people must protect themselves. In social security, health service is rights given to people without distinguishing age and illness. While in social insurance, participants are restricted in age, profession and illness. Moreover the aqad in Social insurance is haram according to syara'.  

2. The law also positions people rights as commodity of business. The people are exploited to give advantage for insurance companies. It is real prove of neo-liberalism domination in Indonesia.

Responding to this, Hizbut Tahrir Indonesia declares: 

1. Refuse the Law No. 24 of 2004 about national social security system.

2. Demand all parties to cancel the Law unless it will burden the economic life of people. So, people are going more suffered.

3. Only Khilafah "Caliphate" can realize welfare for people. Khilafah "Caliphate" will never squeeze his people like capitalist system doing now.

Spokesperson of Hizb ut Tahrir Indonesia

 Muhammad Ismail Yusanto

O Allah! We answer your call!  Across the many false nation states, created by the West to divide the Ummah, the last year has seen the Ummah rise up.  The Ummah has risen up against their tyrant puppet Rulers.  The Ummah has risen up demanding an end to kufr rule and the implementation of the Islamic shar'iah.