Musharraf's lack of judgement is his own worst enemy


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Perceptive Pakistani analysts foretold his arrest, and yet, former president Pervez Musharraf braved the threat and returned. Was it an act of courage or foolhardiness? Why did he come? And now that he has been detained on a variety of charges stemming from his time in power, what will become of him?

These questions resound in every house in Pakistan today. For many of those who understood him, there is little room for sympathy, even as many of us regret the entire episode.

Let's consider the facts of his fall from grace, now seemingly nearing completion.

In August 2007, Mr Musharraf signed the controversial National Reconciliation Ordinance, granting amnesty to politicians. Intended to pave the way for Benazir Bhutto's return to Pakistan, with whom Mr Musharraf had struck a deal, the ordinance could not exclude opposition forces like Nawaz Sharif from returning as well.

Then in November 2007, Mr Musharraf, who was at the time both Pakistan's president and its army chief, declared a state of emergency and suspended the constitution. This set a course for a head-on collision with the judiciary. The Supreme Court responded promptly, declaring the suspension of the constitution illegal. Mr Musharraf, meanwhile, retaliated by placing the chief judge under arrest and incarcerated the judiciary in their respective residences.

The emergency lasted six weeks but Mr Musharraf, while holding on to the office of the president, shed his army uniform. Faced with impeachment by the elected representatives, Mr Musharraf eventually resigned from the office of president in August 2008. He then went into self-imposed exile for about four years in London and Dubai. He decided to return home last month to contest next month's elections only after the Sindh High Court granted him "temporary, protective bail" from charges of corruption and complicity in Bhutto's death.

Then things began to really turn sour for the former president. Not only was he disqualified from contesting the elections from any seat that he had applied for, but charges filed against him began to pile up.

Last week, the Islamabad High Court denied him bail and ordered his arrest.

He fled the court and the rest, as they say, is history in the making.

There is by now no doubt that Mr Musharraf erred grievously in judging the prevalent mood towards him in Pakistan. For that he is no doubt paying the price.

But there is another problem here: the Pakistani judiciary, a monolithic institute with the chief justice as its undisputed leader, has acted in a way that is suspiciously akin to a "sting operation" or entrapment.

Indeed, nearly every act since Mr Musharraf has returned appears suspiciously well-timed and (almost) orchestrated: the protective bail, the way he was encouraged to travel to Islamabad, the chief justice's demand inquiring if anyone had the courage to approach him to revisit Mr Musharraf's treasonous act of suspending the constitution, and the cancellation of bail and order of arrest by Islamabad's high court. Even those of us who hold little sympathy for the former president find this apparent judicial manipulation disconcerting.

Mr Musharraf certainly compounded his own errors. If the decision to return was a strategic error, it was made worse by numerous tactical ones. For instance, his demand for excessive security from the state resulted in his security staff becoming his wardens the moment a court ordered his arrest. Private security guards on his payroll would have given him far greater liberty of action. In Karachi, escape routes were available, but from Islamabad, he has none.

But perhaps his biggest blunder was an expectation that the army would intervene on his behalf. Instead, the army was dealt no cards in this deal. Its only option is to volunteer to try him by court martial for those crimes committed by him in uniform. But not even this option would not protect Mr Musharraf from the wrath of the judiciary, since his "emergency" continued after he shed his uniform, and such a scenario could be far more embarrassing for everyone involved.

This leads us to the final question: how will it end? Mr Musharraf, being a wily political operative, will likely take all those that he can down with him. We might find Pakistan at the epicentre of "Mushi-leaks" which could embarrass individuals and governments on many continents and, of course, domestically encompass many institutions and powerful individuals, in uniform or not.

I cannot but be reminded of the best-selling 1956 novel by Grace Metalious, Peyton Place, about a fictional town whose residents possess a string of lurid secrets. Those with skeletons in the closet in Pakistan, should dispose of them now, before it's too late.

Brig Shaukat Qadir is a retired Pakistani infantry officer

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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