Foreign Aid Comes With Foreign Consultants

Foreign Consultant

It is a well known fact that foreign aid, granted and channeled through the IMF, World Bank, USAID and similar organizations, comes with strings attached. A huge portion of such loans goes back to donor countries in form of remuneration for various consulting and support services provided by companies and firms, commonly known as the Corporatocracy.

The News reported about Federal Bureau of Revenue (FBR) hiring 89 foreign consultants of IMF, each paid $30,000 per month (Rs2.41 million). Consultancy cost might go up as two foreign consultants already working at the FBR since January 2007 have been given extension after they were paid Rs40 million by March 2009. The consultancy fee is expected to increase by Rs20 million.

The inability of these consultants to give positive results was first discussed in whispers by the senior FBR staff but later a female executive mustered the courage to raise voice and sent a letter dated April 23 to the chief of FBR’s Tax Policy and Reforms Wing as well as its chairman. The letter discussed contract agreement of Hugo Hanisch, Programme Manager and Obed Santisteban, Tax Intelligence Consultant, who were given extension up to December 2009. However, the complainant lady has now been quietly transferred to Lahore.

On one hand, government of Pakistan is complaining about shortage of funds, deducting from development expenditure to meet expenses and on the other offering exorbitant salaries to foreign consultants. Such high salaries are not even offered to top-notch executives in the US.

Image: ExplodingDog

About Kashif Aziz

Blogger, Internet Consultant, Procrastinator.

5 Responses to Foreign Aid Comes With Foreign Consultants

  1. Kashif Aziz May 8, 2009 at 9:36 pm #

    @Hamid: Rightly said. Corporatocracy is a group of “like-minded” companies and individuals with the goal of occupying world’s resources. They corrupt governments by offering them huge kickbacks, luring and tempting them to take loans and assistance for their countries. Once a country is stuck into the debt, they tighten their noose, bringing it down to knees, getting more and more favors, strategic assets and resources out of their victim. Sounds familiar?

    Unfortunate part is that most of know about it, but can’t do much.

  2. Shakir Lakhani May 8, 2009 at 7:32 pm #

    There must be some benefit to our people, otherwise they wouldn’t ask for loans. The fact that the lady bureaucrat was transferred means that vested interests are involved. Maybe some of the loan money goes into foreign bank accounts of Pakistanis.

  3. Hamid Majid Abbasi May 8, 2009 at 7:30 pm #

    @ Kashif
    I must say that I am pretty blank when it comes to world economical trends, but what I have witnessed in my small potential just gives me one feeling.
    In the past we had great empires who used to conquer lands, make them into colonies and then the task was to extract all the resources from the native people. Ofcourse, this was the age of European discovery.
    Today, they have not only become more smart, but united also. The World Bank, IMF are no more than a big pool where all developed countries donate money, to be utilized by the 3rd world countries. Once you are into it, they will suck your nerves dry with there out of the world structural changes, policy reviews and above all conditions. This is what we term as neo or indirect colonialism.
    But again, the real fact is that its the survival of the fittest, either forget lending, if not than pay through your generations to come.

  4. Kashif Aziz May 8, 2009 at 6:39 pm #

    I plan to do a review of EHM soon (have already read the book, hence the word ‘Corporatocracy’ used here). This post is to let others know how we are all but pawns in the great game.

  5. Momekh May 8, 2009 at 4:59 pm #

    Read ‘confessions of an economic hitman’ and this will become secondary news.

    They give the money to plainly syphon it back, it is part of the deal. Its practically written out that way.

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