[Part Two: Pakistan and the "Global War on Terrorism" at 
http://www.globalresearch.ca/index.php?context=va&aid=7746]The assassination of 
Benazir Bhutto has created conditions which contribute to the ongoing 
destabilization and fragmentation of Pakistan as a Nation. 
The process of US sponsored "regime change", which normally consists in the 
re-formation of a fresh proxy government under new leaders has been broken. 
Discredited in the eyes of Pakistani public opinion, General Pervez Musharaf 
cannot remain in the seat of political power. But at the same time, the fake 
elections supported by the "international community" scheduled for January 
2008, even if they were to be carried out, would not be accepted as legitimate, 
thereby creating a political impasse. 
There are indications that the assassination of Benazir Bhutto was anticipated 
by US officials: 

"It has been known for months that the Bush-Cheney administration and its 
allies have been maneuvering to strengthen their political control of Pakistan, 
paving the way for the expansion and deepening of the “war on terrorism” across 
the region. 
Various American destabilization plans, known for months by officials and 
analysts, proposed the toppling of Pakistan's military... 
The assassination of Bhutto appears to have been anticipated. There were even 
reports of “chatter” among US officials about the possible assassinations of 
either Pervez Musharraf or Benazir Bhutto, well before the actual attempts took 
place. (Larry Chin, Global Research, 29 December 2007)
Political Impasse
"Regime change" with a view to ensuring continuity under military rule is no 
longer the main thrust of US foreign policy. The regime of Pervez Musharraf 
cannot prevail. Washington's foreign policy course is to actively promote the 
political fragmentation and balkanization of Pakistan as a nation. 
A new political leadership is anticipated but in all likelihood it will take on 
a very different shape, in relation to previous US sponsored regimes. One can 
expect that Washington will push for a compliant political leadership, with no 
commitment to the national interest, a leadership which will serve US imperial 
interests, while concurrently contributing under the disguise of 
"decentralization", to the weakening of the central government and the fracture 
of Pakistan's fragile federal structure. 
The political impasse is deliberate. It is part of an evolving US foreign 
policy agenda, which favors disruption and disarray in the structures of the 
Pakistani State. Indirect rule by the Pakistani military and intelligence 
apparatus is to be replaced by more direct forms of US interference, including 
an expanded US military presence inside Pakistan. This expanded military 
presence is also dictated by the Middle East-Central Asia geopolitical 
situation and Washington's ongoing plans to extend the Middle East war to a 
much broader area. 
The US has several military bases in Pakistan. It controls the country's air 
space. According to a recent report: "U.S. Special Forces are expected to 
vastly expand their presence in Pakistan, as part of an effort to train and 
support indigenous counter-insurgency forces and clandestine counterterrorism 
units" (William Arkin, Washington Post, December 2007). 
The official justification and pretext for an increased military presence in 
Pakistan is to extend the "war on terrorism". Concurrently, to justify its 
counterrorism program, Washington is also beefing up its covert support to the 
"terrorists." 
The Balkanization of Pakistan
Already in 2005, a report by the US National Intelligence Council and the CIA 
forecast a "Yugoslav-like fate" for Pakistan "in a decade with the country 
riven by civil war, bloodshed and inter-provincial rivalries, as seen recently 
in Balochistan." (Energy Compass, 2 March 2005). According to the NIC-CIA,  
Pakistan is slated to become a "failed state" by 2015, "as it would be affected 
by civil war, complete Talibanisation and struggle for control of its nuclear 
weapons". (Quoted by former Pakistan High Commissioner to UK, Wajid Shamsul 
Hasan, Times of India, 13 February 2005): 

"Nascent democratic reforms will produce little change in the face of 
opposition from an entrenched political elite and radical Islamic parties. In a 
climate of continuing domestic turmoil, the Central government's control 
probably will be reduced to the Punjabi heartland and the economic hub of 
Karachi," the former diplomat quoted the NIC-CIA report as saying.
Expressing apprehension, Hasan asked, "are our military rulers working on a 
similar agenda or something that has been laid out for them in the various 
assessment reports over the years by the National Intelligence Council in joint 
collaboration with CIA?" (Ibid)
Continuity, characterized by the dominant role of the Pakistani military and 
intelligence has been scrapped in favor of political breakup and balkanization. 
According to the NIC-CIA scenario, which Washington intends to carry out: 
"Pakistan will not recover easily from decades of political and economic 
mismanagement, divisive policies, lawlessness, corruption and ethnic friction," 
(Ibid) .  
The US course consists in  fomenting social, ethnic and factional divisions and 
political fragmentation, including the territorial breakup of Pakistan. This 
course of action is also dictated by US war plans in relation to both 
Afghanistan and Iran. 
This US agenda for Pakistan is similar to that applied throughout the broader 
Middle East Central Asian region. US strategy, supported by covert intelligence 
operations, consists in triggering ethnic and religious strife, abetting and 
financing secessionist movements while also weakening the institutions of the 
central government. 
The broader objective is to fracture the Nation State and redraw the borders of 
Iraq, Iran, Syria, Afghanistan and Pakistan. 
Pakistan's Oil and Gas reservesPakistan's extensive oil and gas reserves, 
largely located in Balochistan province, as well as its pipeline corridors are 
considered strategic by the Anglo-American alliance, requiring the concurrent 
militarization of Pakistani territory. 
Balochistan comprises more than 40 percent of Pakistan's land mass, possesses 
important reserves of oil and natural gas as well as extensive mineral 
resources. 
The Iran-India pipeline corridor is slated to transit through Balochistan. 
Balochistan also possesses a deap sea port largely financed by China located at 
Gwadar, on the Arabian Sea, not far from the Straits of Hormuz where 30 % of 
the world's daily oil supply moves by ship or pipeline. (Asia News.it, 29 
December 2007) 
Pakistan has an estimated 25.1 trillion cubic feet (Tcf) of proven gas reserves 
of which 19 trillion are located in Balochistan. Among foreign oil and gas 
contractors in Balochistan are BP, Italy's ENI, Austria's OMV, and Australia's 
BHP. It is worth noting that Pakistan's State oil and gas companies, including 
PPL which has the largest stake in the Sui oil fields of Balochistan are up for 
privatization under IMF-World Bank supervision. 
According to the Oil and Gas Journal (OGJ), Pakistan had proven oil reserves of 
300 million barrels, most of which are located in Balochistan. Other estimates 
place Balochistan oil reserves at an estimated six trillion barrels of oil 
reserves both on-shore and off-shore (Environment News Service, 27 October 
2006) .
Covert Support to Balochistan SeparatistsBalochistan's strategic energy 
reserves have a bearing on the separatist agenda. Following a familiar pattern, 
there are indications that the Baloch insurgency is being supported and abetted 
by Britain and the US. The Baloch national resistance movement dates back to 
the late 1940s, when Balochistan was invaded by Pakistan. In the current 
geopolitical context, the separatist movement is in the process of being 
hijacked by foreign powers. 
British intelligence is allegedly providing covert support to Balochistan 
separatists (which from the outset have been repressed by Pakistan's military). 
In June 2006, Pakistan's Senate Committee on Defence accused British 
intelligence of "abetting the insurgency in the province bordering Iran" 
[Balochistan]..(Press Trust of India, 9 August 2006). Ten British MPs were 
involved in a closed door session of the Senate Committee on  Defence regarding 
the alleged support of Britain's Secret Service to Baloch separatists  (Ibid). 
Also of relevance are reports of  CIA and Mossad support to Baloch rebels in 
Iran and Southern Afghanistan. It would appear that Britain and the US are 
supporting both sides. The US is providing American F-16 jets to the Pakistani 
military, which are being used to bomb Baloch villages in Balochistan. 
Meanwhile, British alleged covert support to the separatist movement (according 
to the Pakistani Senate Committee) contributes to weakening the central 
government. The stated purpose of US counter-terrorism is to provide covert 
support as well as as training to "Liberation Armies" ultimately with a view to 
destabilizing sovereign governments. In Kosovo, the training of the Kosovo 
Liberation Army (KLA) in the 1990s had been entrusted to a private mercenary 
company, Military Professional Resources Inc (MPRI), on contract to the 
Pentagon.  The BLA bears a canny resemblance to Kosovo's KLA, which was 
financed by the drug trade and supported by the CIA and Germany's Bundes 
Nachrichten Dienst (BND). The BLA emerged shortly after the 1999 military coup. 
It has no tangible links to the Baloch resistance movement, which developed 
since the late 1940s. An aura of mystery surrounds the leadership of the BLA. 
 
Baloch population in Pink: In Iran, Pakistan and Southern Afghanistan
Washington favors the creation of a "Greater Balochistan" which would integrate 
the Baloch areas of Pakistan with those of Iran and possibly the Southern tip 
of Afghanistan (See Map above), thereby leading to a process of political 
fracturing in both Iran and Pakistan. 

"The US is using Balochi nationalism for staging an insurgency inside Iran's 
Sistan-Balochistan province. The 'war on terror' in Afghanistan gives a useful 
political backdrop for the ascendancy of Balochi militancy" (See Global 
Research, 6 March 2007). 
Military scholar Lieutenant Colonel Ralph Peters writing in the June 2006 issue 
of The Armed Forces Journal, suggests, in no uncertain terms that Pakistan 
should be broken up, leading to the formation of  a separate country: "Greater 
Balochistan" or "Free Balochistan" (see Map below). The latter would 
incorporate the Pakistani and Iranian Baloch  provinces into a single political 
entity. 
In turn, according to Peters, Pakistan's North West Frontier Province (NWFP) 
should be incorporated into Afghanistan "because of its linguistic and ethnic 
affinity". This proposed fragmentation, which broadly reflects US foreign 
policy, would reduce Pakistani territory to approximately 50 percent of its 
present land area. (See map). Pakistan would also loose a large part of its 
coastline on the Arabian Sea.      
Although the map does not officially reflect Pentagon doctrine, it has been 
used in a training program at NATO's Defense College for senior military 
officers. This map, as well as other similar maps, have  most probably been 
used at the National War Academy as well as in military planning circles. (See 
Mahdi D. Nazemroaya, Global Research, 18 November 2006) 
"Lieutenant-Colonel Peters was last posted, before he retired to the Office of 
the Deputy Chief of Staff for Intelligence, within the U.S. Defence Department, 
and has been one of the Pentagon’s foremost authors with numerous essays on 
strategy for military journals and U.S. foreign policy." (Ibid)

Map: click to enlargeIt is worth noting that secessionist tendencies are not 
limited to Balochistan. There are separatist groups in Sindh province, which 
are largely based on opposition to the Punjabi-dominated military regime of 
General Pervez Musharraf (For Further details see Selig Harrisson, Le Monde 
diplomatique, October 2006)
"Strong Economic Medicine": Weakening Pakistan's Central Government
Pakistan has a federal structure based on federal provincial transfers. Under a 
federal fiscal structure, the central government transfers financial resources 
to the provinces, with a view to supporting provincial based programs. When 
these transfers are frozen as occurred in Yugoslavia in January 1990, on orders 
of the IMF, the federal fiscal structure collapses:

"State revenues that should have gone as transfer payments to the republics [of 
the Yugoslav federation] went instead to service Belgrade's debt ... . The 
republics were largely left to their own devices. ... The budget cuts requiring 
the redirection of federal revenues towards debt servicing, were conducive to 
the suspension of transfer payments by Belgrade to the governments of the 
Republics and Autonomous Provinces.
In one fell swoop, the reformers had engineered the final collapse of 
Yugoslavia's federal fiscal structure and mortally wounded its federal 
political institutions. By cutting the financial arteries between Belgrade and 
the republics, the reforms fueled secessionist tendencies that fed on economic 
factors as well as ethnic divisions, virtually ensuring the de facto secession 
of the republics. (Michel Chossudovsky, The Globalization of Poverty and the 
New World Order, Second Edition, Global Research, Montreal, 2003, Chapter 17.)
It is by no means accidental that the 2005 National Intelligence Council- CIA 
report had predicted a "Yugoslav-like fate" for Pakistan pointing to the 
impacts of "economic mismanagement" as one of the causes of political break-up 
and balkanization. "Economic mismanagement" is a term used by the Washington 
based international financial institutions to describe the chaos which results 
from not fully abiding by the IMF's Structural Adjustment Program. In actual 
fact, the "economic mismanagement" and chaos is the outcome of IMF-World Bank 
prescriptions, which invariably trigger hyperinflation and precipitate indebted 
countries into extreme poverty.  
Pakistan has been subjected to the same deadly IMF "economic medicine" as 
Yugoslavia: In 1999, in the immediate wake of the coup d'Etat which brought 
General Pervez Musharaf to the helm of the military government, an IMF economic 
package, which included currency devaluation and drastic austerity measures, 
was imposed on Pakistan. Pakistan's external debt is of the order of US$40 
billion. The IMF's  "debt reduction" under the package was conditional upon the 
sell-off to foreign capital of the most profitable State owned enterprises 
(including the oil and gas facilities in Balochistan) at rockbottom prices . 
Musharaf's Finance Minister was chosen by Wall Street, which is not an unusual 
practice. The military rulers appointed at Wall Street's behest, a 
vice-president of Citigroup, Shaukat Aziz, who at the time was head of 
CitiGroup's Global Private Banking. (See WSWS.org, 30 October 1999). CitiGroup 
is among the largest commercial foreign banking institutions in Pakistan.
There are obvious similarities in the nature of US covert intelligence 
operations applied in country after country in different parts of the so-called 
"developing World".  These covert operation, including the organisation of 
military coups, are often synchronized with the imposition of IMF-World Bank 
macro-economic reforms. In this regard, Yugoslavia's federal fiscal structure 
collapsed in 1990 leading to mass poverty and heightened ethnic and social 
divisions. The US and NATO sponsored "civil war" launched in mid-1991 consisted 
in coveting Islamic groups as well as channeling covert support to separatist 
paramilitary armies in Bosnia, Kosovo and Macedonia. A similar "civil war" 
scenario has been envisaged for Pakistan by the National Intelligence Council 
and the CIA:  From the point of view of US intelligence, which has a 
longstanding experience in abetting separatist "liberation armies", "Greater 
Albania" is to Kosovo what "Greater Balochistan" is to Pakistan's Southeastern 
Balochistan province. Similarly, the KLA is Washington's chosen model, to be 
replicated in Balochistan province. 
The Assassination of Benazir Bhutto
Benazir Bhutto was assassinated in Rawalpindi, no ordinary city. Rawalpindi is 
a military city host to the headquarters of the Pakistani Armed Forces and 
Military Intelligence (ISI). Ironically Bhutto was assassinated in an urban 
area tightly controlled and guarded by the military police and the country's 
elite forces. Rawalpindi  is swarming with ISI intelligence officials, which 
invariably infiltrate political rallies. Her assassination was not a haphazard 
event. 
Without evidence, quoting Pakistan government sources, the Western media in 
chorus has highlighted the role of Al-Qaeda, while also focusing on the the 
possible involvement of the ISI.  
What these interpretations do not mention is that the ISI continues to play a 
key role in overseeing Al Qaeda on behalf of US intelligence. The press reports 
fail to mention two important and well documented facts: 

1) the ISI maintains close ties to the CIA. The ISI  is virtually an appendage 
of the CIA. 
2) Al Qaeda is a creation of the CIA. The ISI provides covert support to Al 
Qaeda, acting on behalf of US intelligence.  
The involvement of either Al Qaeda and/or the ISI would suggest that US 
intelligence was cognizant and/or implicated in the assassination plot. [Part 
Two: Pakistan and the "Global War on Terrorism" at 
http://www.globalresearch.ca/index.php?context=va&aid=7746]

Michel Chossudovsky is the author of the international bestseller America’s 
"War on Terrorism"  Global Research, 2005. He is Professor of Economics at the 
University of Ottawa and Director of the Center for Research on Globalization.  


To order Chossudovsky's book  America's "War on Terrorism", click here 
 

 Global Research Articles by Michel Chossudovsky
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