Imran Khan’s Real (ty) “Investments” – Zulfiqar Ali

Editor’s Note: LUBP highlighted these financial irregularities over a year ago Imran Khan’s financial credibility? – by Ahmed Iqbalabadi (10th May, 2011) followed by Some questions about Imran Khan’s PTI NA-USA LLC – by Ahmed Iqbalabadi (13th May, 2011).  “The purpose of both the articles was not to taint Imran Khan and his PTI with sweeping statements (like the allegations of PTI-PML N-media-JI-civil society against PPP) like being corrupt, dishonest and unprincipled . Both the articles merely raised questions related to Shaukat Khanum Memorial Trust (that manages the Shaukat Khanum Memorial Hospital) and Pakistan Tehreek-e-Isnaaf’s PTI-USA LLC, registered as a limited liability company in the USA.

In the articles, we did a small review of Shaukat Khanum’s annual audited financial statements for the year 2009 and also questioned the role of PTI-USA LLC in registering protests. Both the articles were written from a financial and logical perspective and raised pertinent questions. The logic was: Shaukat Khanum Memorial Hospital is the proud brainchild of Imran Khan –> It is a successful venture in the country where success is quite limited –> Imran Khan is the Chairman of the Board of Governors of SKMT and we can assume he has significant interest and say in the management of the Trust –> If there is something wrong in the Trust’s working i.e. investment policies as highlighted in the article, then we can ask questions and deserve to get a decent response” (Imran Khan’s financial credibility five months down the road, 9th Nov. 2011). 

SKMT is a national asset which would not have been possible without the contributions of PPP and PML N governments of the 1990s.  Therefore, the debate around the alleged mismanagement of its funds should not be focussed around the mud slinging campaigns of PML N and PTI.  It should critically examine the core issue of funds mismanagement and Zulfiqar Ali’s article asks some more pertainent questions (End Note)

One of the classifications divides narcissism it into Constructive vs. Destructive Narcissism. Self-esteem, perseverance and confidence are necessary to be a leader. But unrealistic fantasies about one’s talents are nothing but destruction. That is what we see in the case of our to-be Messiah IK.

Just few months ago no one would have imagined PTI to be in present pathetic situation. After some rallies, they increased their filthy smear campaign, not thinking things can boomerang. Being continuously promoted as reincarnation of Jinnah, George Washington and living Nelson Mandela( all combined), he/they not only believed themselves but reacted vociferously if someone disagreed with them. Month over month, they continued their dirty name callings and puerile tantrums mixed with fake surveys. On March 19th 2012, he remembered ‘innocent until proven guilty’ while talking about OBL but immediately he reverted to his tirades against Asif Ali Zardari  and Nawaz Sharif . When not paid back they, most likely, thought that others did not have anything against their saintly Tsunami. Perhaps, they did not know something about ‘timings’. May be Fouzia Kasuri could have told them what is called “October Surprise” in USA.

It is just second trailer after Benami, and they are wailing like a widow. As previous, his statements about SKMT are also full of lies. Sadly some of PPP leaders have been siding with PTI. PPP needs to ask such leadership to not reflexively condemn everything PML-N does. If their points are valid, then they should, rather, be commended. IK and cohorts have been saying that SKMT has been dragged into politics by PML-N. How can they say it, when his only and only credential presented to people has been this? It is only them to be blame for that. It (with NAMAL) has been his only worth mentioning political ‘investment’ of IK in Pakistan.

Finance is not my field, so these are just layman’s observations. I tried to not to indulge in complicated things. It is possible that my interpretations are wrong. So please correct me in comments sections.

One has absolute right to spend one’s own earnings as may please one. But “Trust” means that society has put some trust in you, which it does not expect to be broken. Trusts are exempted from regular taxes and also get grants from ‘nation’ and other agencies. Simply speaking one is made “ameen”.

It is true and also right that investments are needed for smooth working of trusts. But it is also true that society does not expect speculative investments. Basic and foremost is the choice of investment consultant. Let us try to find who Mr. Imtiaz H Hydari is. His investment genius is also helped  by  Zulfi Caar Hydari aka Zac Hydari, Arshad Hydari seemingly his sons.


For average person like me, his work experience and ‘resume’ is too extensive. But here is some of his investment profile.

He was CEO of Olayan Group and Saudi based company. One other person with him at Olayan was Arif Naqvi.

On Jan 5th 2002 Rasmala Buyout Fund, through its subsidiary based in  Cayman called Rasmala Distribution Ltd., announced 61 Million $ buyout of an express package delivery company called Aramax. This was the very first business of it. They were also partners in a Luxemburg based company Groupe Copula which was subsidiary of The Cupola Group from Dubai. Cupola group’s two top officers were Mr. Imtiaz Hydari and Arif Naqvi.

In 2005 European Islamic Investment Bank (EIIB) was formed and is marketed as Sharia based banking. Currently its executive board consists of Zulfi Caar Hydari and Keith Mcleod. After completing strategic controlling investment earlier, EIIB announced on April 2nd 2012 that it was further expanding the dealings with HBG stating

“Rasmala has a strong asset management platform and we are fully committed to expanding this business across the MENA region….”

Wouldn’t it have been suffice to just say that my dad is the chairman and I myself am co-founder and managing director of HBG?

EIIB has also been losing money since inception. It lost 0.5, 22.0, 5.9 and 14.9 Million GBP in years 2008, 2009, 2010 and 2011 respectively.

HBG’s leadership team consists of


  • His Excellency Abdallah Al-Mouallimi Chairman (Non-Executive, not involved in day to day functioning)
  • Imtiaz Hydari      CEO, Exec Vice Chairman and Board Director
  • Zulfi Hydari         Co-Founder


HBG being privately held, financial details are not public. But being run by same family, it would be foolish to expect the results otherwise. As I said, “Resume” is too extensive to evaluate in just few days’ time.

Considering all, was it wise to make Mr. Hydari an investment consultant?


IK and Co.’s main defense has been that money invested;

  • Was not Zakat.
  • Only Endowment Fund which is by donations given specifically for the Fund
  • It is guaranteed that SKMT will not incur any loss.

Zakat vs. Non Zakat; it is not only laughable logic but also not true. This is the same thought which many of us may have observed ourselves. Some of us work on positions which are well known for ‘ooper ki kamai’. When we have to make payments for Qurbani, or other charity work etc., we wait for salary, believing that to be Halal.

During his press conference on Aug 1st Imran Khan  claimed that the money they from abroad is kept in endowment fund account (5:30).But SMKT financial statements are not in concordance with that.Money has persistently transferred from general fund to Endowment.


Transfer from General Fund to Endowment Fund

Year PKR
2007 ?
2008 37,715,028
2009* 43,069,416
2010 22,502,441

Total                      103,286,885

*However General fund took over 41.6 M worth liability from Endowment.


IK later changed his statement saying that 10% of donations (foreign?) are transferred to endowment.



If investments were ‘guaranteed’, then why they are showing losses over the years? More importantly, why they still kept money with the same person? As per their statement they have lost money.

Unrealized Gain/ (Loss) on investments in PKR.

Year *
2007 -(3,612,821)
2008 -(58,776,859)
2009 -(1,741,680)
2010 -(9,295,705)

Total                                                   – (73,427,065)

*Mostly investment is from Endowment, but General Fund also minute investments.


Once I heard IK saying on TV that CEO did not get any salary. It is possible, but unlikely, that I misheard him,. Here are his and other directors’ remunerations.







Remuneration and other payments to

Year CEO Board Directors
2006 4,515,000 11,711,632
2007 6,800,000 14,249,195
2008 6,950,000 13,497,738 *
2009 7,917,500 15,296,571
2010 9,496,175 23,204,792

*No. of directors was three this year vs. 4 for all others

It included housing, retirement benefits, bonuses, utilities expenses. Free transport to all is provided.   CEO is also provided free residence. But every year, he has also been given substantive amounts. In the year 2010 he was paid 2,194,440 (above numbers include this).Maybe he is living outside the hospital premises, but if residence is available, why not to make him use it?

Reports have been audited by A.F. Ferguson, a firm with worldwide operations, as per IK. There are two main concerns about this, however.

A.F. Ferguson is Pakistan based with offices in Karachi, Lahore, Islamabad and Kabul. It is ‘member’ of Pricewaterhousecoopers. It is run by three partners Soli R. Parakh, M. Shahid Sadiq and Shahzad Hussain.

They are honorary auditors. It apparently means that they are not paid and also are not responsible for authenticity of the audit. While general report carries the signature of both Imran Khan  and Dr. Faisal Sultan and reports have NO SIGANTURES of either the auditors or management of SKMT. It has no legal value at all.

What about Arif Naqvi? Currently he is Vice Chairman and CEO of Abraaj Capital and Mr. Imtiaz Hydari was one of Abraaj’s co-founder too.

His profile on Abraaj says;

“In 2006, he was awarded the HIGHEST civilian honor in Pakistan, the Sitara-i-Imtiaz, by the Republic’s President.”

Well it is in fact third highest!!!

He seems to very close to IK.IK has attended many functions/fundraisers by Abraaj. Some people have also described him as PTI leader. IK has praised him many a times on TV also. IK was at Abraaj function in Nov. 2010.They were together at Davos this year also. In March 2011, a fund raiser for the flood victims was done by IK (I did not know flood thing was still active).It raised one Million US $.Mr. Naqvi was a major speaker at that event.

It was Abraaj which took over KESC. As per contract it was to invest 350 M $.It invested 150 M. It did not invest next installment in time. On Dubai 3rd 2009, US Dubai Consulate sent a cable to Karachi, Islamabad and Washington. Among other things it contained following

“Mr. Naqvi explained that Abraaj had agreed in 2007 to take over management of the Karachi Electric Supply Company following a negotiation of several pre-conditions with the Government of Pakistan (GOP). One of those pre-conditions was a write-off of 32 billion rupees (which Naqvi lamented has been heavily criticized in the Pakistani press as a kick-back of sorts).  In return, Abraaj committed to a USD 360 million investment in KESC over a three year period, of which, Naqvi said, USD 150 million has already been deployed.  Naqvi noted that the GOP has asked Abraaj to accelerate its delivery schedule; the company is considering the request now.  Abraaj gained a controlling stake in KESC in September 2008……

…He conveyed two points: a) USD 100 million in working capital, allegedly tied up in

receivables, “MUST” be released by the GOP;

and b) the GOP MUST stop fueling the political fire through public calls for KESC’s nationalization…” (Wikileaks)

During Davos of 2010 Mr. Naqvi was mentioned news prominently

“Secretary of State Hillary Clinton, Education Secretary Arne Duncan, Commerce Secretary Gary Locke and other senior U.S. officials will participate in sessions alongside private sector experts like Yahoo! chief executive Jerry Yang, Grameen Bank founder Muhammad Yunus and Arif Naqvi, head of Abraaj Capital, the largest private equity firm in the Middle East.”


Sep 05th 2010 news said,

“Abraaj Capital and Citadel Capital and have secured $250m in fund commitments from the US Overseas Private Investment Corporation (OPIC).”

About two months later

“…Abraaj officially launched its Riyada Entrepreneurship Development (RED) fund that will provide $500 million in growth capital to develop early and mid-stage enterprises across 14 growth markets in the region. The U.S. Overseas Private Investment Corporation (OPIC) contributes $150 million to the fund following President Obama’s Cairo speech, in which he announced a fund to develop technology in Muslim-majority countries…”

Imran Khan was also there at that function.

Is there any connection?

May be  Ambassador Munter knows.




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