The Real Crime Of Imran Khan That Led To His Ouster

The Real Crime Of Imran Khan That Led To His Ouster

An analyst was asked about his opinion on Imran Khan’s ouster from government. This is what he had to say:

“I will tell you what crime Imran Khan committed. I have been asking myself why Imran Khan had to be removed immediately rather than wait for 16 months to complete the term. So here is the answer.

To understand this, let us first cover two main concepts: 1) Petrodollar and 2) Indian Rupee-Ruble trade singed between India and the (then) Soviet Union.

What is Petrodollar?

It’s an agreement signed between King Faisal and President Nixon in 1974. Saudi responsibility was to convince all OPEC countries to sell oil in US dollars and not accept any other currency or gold.

All proceeds from sale would be deposited in US banks or Federal Reserve. (Then there is a lengthy formula how the OPEC country would do withdrawals. We can go over it some other time.) This increased the demand for USD because for any country to buy oil they first have to buy USD. This arrangement keeps USD strong.

In return Saudi currency was pegged at 1 USD = 3.75 SR, the Saudi economy may do well or bad, the conversion rate will remain the same. They will not face devaluation. Secondly the US guaranteed that the House of Saud will remain in power, no regime change would be brought about.

US responsibility was to make sure none of the OPEC countries opt out of this arrangement. Iraq and Libya renegaded and we all know what happened to them.

What is Indian Rupee-Ruble trade agreement?

It was signed between India and the Soviet Union (subsequently Russia) in 1953.

For Indian purchases from Russia they would pay in Indian Rupee. This increases the demand for Indian Rupee and the currency remains strong.

For Russian purchases from India they would pay in Ruble. This increases the demand for Ruble and the currency remains strong.

An Indian bank would open a branch in Russia and a Russian bank would open a branch in India to facilitate trade. There are safeguards built in so neither country could cheat.

This arrangement bypasses SWIFT.

It is very important to understand that this deal occurred in 1953 before the petrodollar deal in 1974.

Imran Khan was the first Pakistani PM to do a Pakistani Rupee-Chinese Yuan deal in 2019. This deal covered semiconductor, transformers and broadcasting equipment, etc. The US was not happy, but they let it go because it never included oil.

Imran Khan was in the process of doing a Pakistani Rupee-Russia Ruble deal for oil in 2022. Remember Petrodollar deal is dated 1974. This was a no, no. US could not accept this because if other countries followed suit, the USD would weaken and US economy will come down to EU level. It will not be a superpower any more.

If Imran Khan would have succeeded in doing this within next 16 months, even at the expense of losing the next election Pakistan would have come out of slavery. Hence he had to be removed immediately.

He left the US no choice.

Imran Khan should be thankful that he is not sitting with Saddam Hussain and Gadhafi in heaven. US has given him a second chance, but if he is determined not to avail then only God knows what will happen to him or Pakistan.

If Imran Khan is successful in getting this this through in his second term, this constant devaluation of Rupee (1 USD = 180 PKR) will stop, Pakistan will start paying IMF and conversion rate will recover.

So Pakistan is at a crossroads:

– it can end up with Iraq and Libya.
– it can end up with Sri Lanka.
– it can end up with freedom.

So what will it be Pakistanis?


Categories: Current Affairs, Pakistan

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