The Pakistani Spectator

A Candid Blog



Obama’s Surge in Pakistan/An Indian looks at the Opium trade

By captainjohann • Feb 6th, 2009 • Category: Politics • 7 Comments

As America is retreating( so called surge is basically asking for fig leaf before the exit as in Iraq) , there is tremendous amount of churning going on in Afghanistan. This was evident to everyone for sometime .When President Karzai desperately wanted Mullah Omar to accept his offer of safe passage was the first sign and also when Saudis hosted the conference in Mecca. Why such importance to this tiny country whose people live in caves mostly.

The Jihadies have already gone into the caves of Wazirstan.Then Why? It is the poppy and heroin trade which has come back into life after the NATO forces took over the country from Taliban. Taliban who not only enforced Sharia but also other stringent Islamic conditions on the people ensured that poppy was not cultivated at all.Though this infuriated the ordinary Afghans they enforced it ruthlessly.This also ensured the vanquishing of Drug Mafia run by Drug lords like General Dostum,Ishmeil Khan etc etc.When ISAF took over, it opened the flood gates of Freedom of media,personal liberty but also to grow poppy.Initially it ensured the ordinary Afghans were happy with money which came from this trade .The ISI through TALIBAN also did not abolish this trade but used it to subvert the central rule of Karzai who was once an ISI asset.
US winked at this as long it was supporting Pakistani army and ISI but not affecting its global interest in Pain killers market in Europe.But ISI is no fool as can be seen by its reach in subverting Indian police and NCB officials and pushing high grade Heroin into India.It thinks subverting Indian elite through heroin and other poppy drugs is as effective as terrorist attack against India.As the global prices for Heroin crash in European market, CIA is waking up to face the challenge of protecting its market in Europe and USA.
One must know Iran/contra scandal and how drug money played an important point of that scandal or operation by Oliver North of CIA.
Again General Noreiga and his connection to CIA and drug cartels is something everyone knows.
But the connection between ISI and CIA through drug money is not much known as it is intricately linked to jihadi terrorism which gets more media space.The question is ISI CANNOT SURVIVE AS AN INSTITUTION WITHOUT THIS OXYGEN from DRUG TRADE.
Every one knows about poppy cultivation and how it is used in producing Opium and its illegal derivatives Heroin and Cocaine.But few know about CODEINE AND MORPHINE the legal pain killers are also made from opium.Legal pain killers are consumed by only SIX countries in Europe.The market is of course controlled by genuine Drug manufacturers. But the cost is linked to illegal opium production as very few countries produce legit opium. Turkey and India are some of the leading legit producers.
The cost of production also is a factor.
1 Kg of Morphine is produced for $ 56 in Australia
1 Kg of Morphine is produced for $160 in India
1 Kg of Morphine is produced for $ 450/- in Afghanistan.
The precursor chemicals like Ascetic an-hydride and others and their smuggling also are a factor in this trade.

Again HAWALA in Afghanistan is controlled by poppy induced illegal money. One finds the hawala centers are the same which also produce illegal opium. Helmand is the Hqtrs of both Illegal opium and hawala trade.The drug and hawala route are also same.
1.Helmand- Pakistan- Iran
2.Herat-Iran
3.Faizabad(Badsha Khan province-Tajikistan-Pakistan-China.
93% of World’s Illegal opium is grown in Afghanistan.Out of which 70% is grown in Helmand.Again a small border town in Helmand bordering Pakistan called Baramcha is the focal point of all the illegal trade in opium and Hawala.The world’s intelligence agencies have their meeting point in this small but prosperous town.
The total economy of Afghanistan is 7.8 Billion US dollars. While illegal opium trade is more than 5 Billion US dollars!!!Now one can understand how important is drug trade is to Afghanistan and also to Jihadies and also to ISI.

TALIBAN just impose a small 10% of tax on opium produced in areas which they control and one can easily imagine the money they control and why Pakistan is crying hoarse about the recent drone attacks. When one sees that Pakistan as a nation got only 4.5 billion US dollars from IMF, the money which Taliban/ISI axis are controlling in Afghanistan is mind blogging. But USA must be aware of this and allowed it. UK is in contrary policy option is due to their posting in Helmand where 2 para of UK just provide security to poppy crops of Afghan farmers for some consideration must be.!!!UK is the nation which indulged in opium war with China during 18th century.It knows how to make profit in every situation. UK is growing recently poppy at DIDCOT county in UK. Macfarlan Smith a pharma company is given the license to produce the poppy. Of course our foreign policy mandarins knew anything about this poppy /pharma connection in UK is antibody’s guess because they were surprised at Millibands outburst. Canada is another country which is facing the problem of seduction of Drug money on its soldiers and CONTRACTORS like Compass Integrated Security solutions who are even blamed for death of a Canadian soldier.
Taliban are able to completely ignore or reduce taxes on non/opium trade in the area they control as long as one pays 10% tax on the opium produced and thereby winning the hearts and minds of ordinary farmers. So a reduction in cultivation will force them to increase the non/poppy tax base. Increase in opium production is a sort of vested interest created in Taliban by US and ISI through their drug lords. But Taliban have been very clever .They have built a significant buffer stock of the crop and so any reduction in cultivated area will only add to the price increase , which they can exploit.
Saudi funding for insurgency has significantly reduced to TALIBAN who have no ISI connection.So it is Drug money which is actually fuelling the insurgency and economy of Afghanistan and also FATA/WAZIRSTAN.Then what is the game plan of
Obama administration in inviting the following for his inauguration.
1.Gul Agha Sherzai
2.Dr.Ashraff Ghani Ahmedzai
3.Ali Ahmed Jalali
4.Abudullah Abdullah, ex foreign minister from northern alliance.
He is trying to do what President Reagan did by inviting Gulbudin Heketmayer to his ranch even though he was known as the warlord who threw acid on faces of Kabul university girls.Why he is trying to replace Karzai with one of these war lords? These guys are not angels.The reason is DRUG TRADE AND DRUG MONEY which made even Zilmay Khalizad (ex American Ambassador to UN) salivating for the job.
What India should look for in this scenario?
1.India must look at the surge of US forces and its deployment.Whether it is trying to stop the poppy cultivation or trying to act as a protector of Afghan farmers doing the cultivation?
2.Whether any effort is being made to stop the 10% tax which Taliban are imposing on behalf of ISI?
3. What type of new war lords are being created and what are they being asked to do?
4.Whether Drone attacks are being stopped inside Pakistan as demanded by Pakistan and Turkey.
5.Whether HAWALA is being routed through Peshawar or through Herat?
6.What happens to GITMO detainees ( who were actually drug lords caught during the 2001 war)who are going
to be released?
7.NATO forces are supposed to thin during 2011 .Who is allowed to take over in HELMAND in the guise of a criminal war lord(not Jihadi!!!) will be the significant pointers for Indian policy.If this guy is going to be a Saudi/ISI guy then India has to be wary of USA.
8.What role Turkey is going to play in the scheme of things will also be pointer to geopolitical landscape in future.TURKEY’S full solidarity and support for PAKISTAN’S sovereignty,political independence,and territorial
integrity is known.Indian foreign policy mandarins must look at turkey’s idea of Pakistan’s territory.(http://www.mfa.gov.tr/pakistan—turkey-joint-statement_-ankara_-october-27-31_-2008.en
Here is turkey, a major NATO MEMBER which is functioning in AFGHANISTAN which is not a member of NATO, WHCH HAS NOT RECOGNIZED DURAND LINE ,which is its border with Pakistan(MAJOR non/NATO ally of USA) is being given the security cover by a NATO MEMBER.I do not know what is the take of Indian foreign policy Mandarins on this issue.What is the policy of Turkey on the border between Indian and Pakistan? The recent spat between Erdogan and Peres of Israel is one of an issue or it is Turkey effort to gain the leadership of Islamic world though it recognises Israel may be with a wink from USA.
9.The effort by ISI to rekindle KHALISTAN AGENDA among the Sikh Diaspora especially in Canada has to be watched closely.The drug money
can win any one and white Canadian politicians are no exceptions. India knows how Canadian royal Mounted police handled its Sikh assets
even though they killed nearly 400 innocent Indians through mid air bombing of Air India jet.The ex/ISI boss Lt.Gen.Javed Nasir who is controlling 150 Sikh gurudwarahs in Pakistan through PGPC is known for his suaveness with regard to use of Drug money.He violently opposed Benazir’s distaste for fomenting Sikh extremism in India through ISYF( Lakhbir Rode),Wadhawan Neeta(Khalistan Zindabad force),P.S.Panjwar(KCF),Gajinder Singh(Dal Khalsa).All these guys especially Rode is being given leadership role for recruiting Sikhs in India through its agents or by reigniting Anandapur Saheb resolution through remnants of Bhindranwale’s followers who are in legit mode in various political parties of Punjab.
10.The biggest threat is how this drug money is being used by Pakistan’s ISI to undermine INDIAN ECONOMY which it feels is the real reason for world taking note of India.This also will suits CHINA which is not at all happy at the rejuvenation of Indian psyche after the drubbing it gave in 1962.
a)Printing and distributing fake Indian currency notes through D/COMPANY, Sikh’s ISYF,HUJI(Bangladesh) along with Indian LET,JEM operatives in KERALA AND HYDERABAD.The recruitment for training of these operatives are done in Saudi Arabia,UAE etc where normally most of these expatriates work.Missing youths from these areas should be an area of prime concern for Indian security agencies.
b)Disrupting INDIAN TOURISM. Mumbai attack can be also seen as a sort of disruption of Indian tourism industry along with those attacks in Jaipur,Bangalore and attempted ones in Goa.
c)Disrupting Indian Cricket especially the IPL being a money spinner for Indian Economy.
d)Along with Satyam, the Indian money bags can be vulnerable to BLACKMAIL. There is an email circulating about Swiss bank accounts of Indian Big cats and how Swiss authorities are willing to divulge the names if asked for by Indian Government.
As General Hamid Gul commented in a recent blog about RAW. It is 24/7 war with Indian Intelligence and he is proud of his ISI waging it successfully. The bombing of Indian embassy in Kabul may be an attack on those honest middle level intelligence operatives by ISI though it may look like a terrorist act. I understand the black market rate for obtaining an Indian visa from our Kabul embassy is 300 US dollars for single day clearance while it is 200 US dollars for clearance in 4 days.This is a hefty amount for ordinary Afghans who have to travel to India for MEDICAL HELP as in this one area none can beat India in the quality of health care for the money paid. But Indian staff have to be paid well enough so that they donot indulge in petty corruption. India also should think of opening a lady Gynaecology hospital meant only for ladies in Kandahar instead of building roads which serves the interest of ISAF.


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Click For More Articles By captainjohann I am a retired Jet Pilot of Government of India. My only daughter is schizophrenic and as such interested in disabled due to mentalillness.
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7 Responses »

  1. Johann,

    What is it that you are trying to prove over here?

  2. Yeah Johannay Bahi! like Adi said

    interesting info and stats, full marks for that, but whats the point?

    B. Regards

  3. Dear Arias and Adi,

    Johann has written this article from an INDIAN PERSPECTIVE.

    This thought provoking,eye-opening article on poppy cultivation is meant to point out the possible scenarios for India and the options that India has to counter this.

    Thanks JOHANN FOR WRITING THIS ARTICLE.

  4. Incredible Indian,

    On the point that you made, I still have little doubt on that. If this is on Indian perspective it would have been in some Indian blog spot not here.

  5. Adi

    This article was ORIGINALLY PUBLISHED in Johann’s personal blog.

    i read it first there.

    Also Johann is an AIR FORCE guy.

  6. Since Obama’s earnest drive to convince the nation to weaken its economic strength through redistribution as well as weaken its national defense, has confirmed the very threats to our Republic’s survival that the Constitution was designed to avert, it no longer is sustainable for the United States Supreme Court and Military Joint Chiefs to refrain from exercising WHAT IS THEIR ABSOLUTE CONSTITUTIONAL DUTY TO DEFEND THE NATION FROM UNLAWFUL USURPATION. The questions of Obama’s Kenyan birth and his father’s Kenyan/British citizenship (admitted on his own website) have been conflated by his sustained unwillingnes to supply his long form birth certificate now under seal, and compounded by his internet posting of a discredited “after-the-fact” short form ‘certificate’. In the absence of these issues being acknowledged and addessed, IT IS MANIFEST THAT OBAMA REMAINS INELIGIBLE TO BE PRESIDENT UNDER ARTICLE 2 OF THE UNITED STATES CONSTITUTION. Being a 14th Amendment “citizen” is not sufficient. A “President” MUST BE an Article 2 “natural born citizen” AS DEFINED BY THE FRAMERS’ INTENT.

  7. Hi Adi,Arias,Inc Indian,
    1.Why OBAMA is imposing a guy different from Karzai in Afghanistan? Is he not playing the game of Bush?
    2.Why Musharaff also was against Karzai while Zardari is comfortable with Karzai?
    3.Why Pakistan is talking about India’s Afghan consulates?
    4.Why Indian embassy in Kabul and Mumbai blast were connected to ISI?
    Answer them to yourself and read the blog again. Now read the following interview also by chief of UNited nations drug controller. Now you will understand why Pakistan is important to USA’s drug mafia.

    an. 27, 2009 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
    The world drug trade is so big, it is “the most important” of all world “agricultural” markets, worth over $320 billion on the street, UN Office of Drugs and Crime director Antonio Costa told the Austrian weekly Profil in an interview published in full today. This huge trade not only funds operations like the Taliban or Colombia’s FARC, but has been used to bail out some of the world’s crisis-hit banks since the second half of 2008, he said.

    Costa was also very critical of the British-sponsored plan to buy Afghan-grown opium for “medical” purposes, saying this had led to a doubling of production in just one year’s time.

    Asked if the drug trade is one of the most important in the world, Costa told Profil: “If you look at agriculture markets, it is the most important. According to our calculations, the wholesale value of illegal drugs is more than $90 billion, in the range of world meat and grain trade. The street trade, we assess at a volume of over $320 billion.”

    Profil then asked if the world financial crisis was having a notable effect on a market of this size — over half a percent of world GDP. Costa answered: “Certainly. The drug trade at this time could be the only growth industry, with little unemployment. The money that is being made, is flowing only partly back into illegal activities, in parts of Asia, Africa, and South America, where it is used to bribe politicians, buy elections, or finance insurgents, such as the Talibans in Afghanistan, the Tamil Tigers of Sri Lanka, or the FARC in Colombia, for example.”

    The rest of the money, he said, “is fed into the legal economic circulation through money laundering. We do not know how much, but the volume is imposing. As such, seen from the macroeconomic effect, this is simply bringing in investment capital. There are indications, that these funds also ended up in the finance sector, which has been under obvious pressure since the second half of last year.”

    Asked how this was done, Costa answered: “It appears that interbank credits have been financed by money which comes from the drug trade and other illegal activities. It is naturally hard to prove this, but there are indications that a number of banks were rescued by this means.”

    This cannot be done by drug bosses depositing cash in their local banks, Profil asked. Costa responded: “In many cases, drug money is currently the only liquid investment capital, to buy real estate, for example. In the second half of 2008, liquidity was the biggest problem the banking system had, and therefore, this liquid capital became an important factor.”

    Asked why it is so difficult to prove these capital flows, Costa said that, “ironically,” this is because of the impact of anti-money-laundering controls. “To get around the electronic surveillance of bank transactions, now criminals stash their funds in cash sums which can be up to hundreds of millions of dollars. This is the way they try to hold these funds liquid.

    He named West Africa as a region where the transfers of drug money are increasing significantly. He rated the drug economy as some 30% of Afghanistan’s whole GDP, because the GDP itself is so low, at less than $10 billion. In Colombia, the drug economy is a much smaller part, less than 1%, although the drug trade is worth some $10 billion.

    Costa expressed his opposition to drug legalization. “We have to consider the interdependence of drugs and criminality; anything else would be irresponsible…. Legalization would inevitably send abuse way up.” On the proposal to “legally” buy opium from the Afghan farmers, Costa was even more dismissive. This was tried already in 2003, he said, when the British gave out over 100 million euro to compensate farmers for the destruction of their opium crops. This did not work; “it had the opposite effect. Within one year, the cultivation doubled, because the farmers knew that if the drug traders did not buy their opium, then I’ll get my money from the British.” As to medical use, the infrastructure does not exist for expanded use of morphine as a medical painkiller. “On the world market, opium commands a price of $30-$32 per kilo for medical use; in Afghanistan, the drug traders pay $100 for that amount. The choice is easy for the opium farmers.”

    Asked about the use of crop destruction in Afghanistan, Costa responded that the “smugglers must really be punished,” but the farmers handled differently. They must be supported to give up the illegal drug production. In Colombia, he said, barely 1% of farmers returned to drug cultivation, when they had themselves decided to destroy the crop, but when this was done by police or military, 30% of the fields returned to drug production only a little while later. In Afghanistan, what NATO should do is destroy drug labs and prevent drug transport.

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