News
Thursday, June 10, 2010
Country heading towards ‘financial emergency’: ‘Q’* Prof Khurshid says new taxes will increase inflation
* Babar Ghauri says govt should privatise ‘failed’ institutionsBy Zeeshan Javaid
ISLAMABAD: The Pakistan Muslim League-Quaid (PML-Q) proposed on Wednesday the government convene an All-Parties Conference to chalk out a “charter of economic management” similar to the Charter of Democracy, which all political parties will have to implement in letter and spirit.
Participating in a debate on the Financial Bill 2010-11 in the Upper House, Senator SM Zafar said after listening to Finance Minister Dr Hafeez Shaikh’s budget speech, it was clear that the country’s economy may collapse anytime.
He warned that a “financial emergency” might have to be imposed under Article 235 of the constitution if corruption, nepotism and bribery were not eliminated immediately, as the top finance manager of the government had clearly indicated in his speech.
“Due to rampant corruption in government institutions, the economy has been crippled to such a level that it may not sustain for long if remedial steps are not taken immediately,” Zafar added.
He said the common man is already burdened by price hike, questioning how the government plans to implement the decision of freezing current expenditures without a clear plan.
Senator Prof Khurshid Ahmad said the new budget will not help address the masses’ problems, who have already been crushed under sky-rocketing prices, unemployment, poverty and terrorism.
New taxes: He said taxes introduced in the budget would increase inflation, which would make it even more difficult for the poor to make ends meet. The public is witnessing an unprecedented price hike, load shedding and other problems and the government is burdening the people more in the name of VAT, he added.
Commenting on increased salaries of government employees, Prof Khurshid said it was not enough to address the miseries of the inflation-stricken people. He said the salaries of private-sector employees should be increased to at least Rs 9,000 a month, adding that the salaries of government employees had not been increased in line with the price hike.
Prof Khurshid said the budget deficit of over Rs 680 billion would increase inflation, arguing that over-spending by the government was the main cause of the menace.
Privatisation: Senator Babar Ghauri said there was no need to impose VAT, rather the government should privatise “failed” institutions and impose agriculture tax on major farmers to generate revenue.
He also said the government should rid itself of the IMF and rely on indigenous resources, recommending reducing the sales tax instead of increasing it by 1 percent.
Promises: Senator Salim Saifullah said the rate of corruption in the government had increased and it would be difficult to progress without controlling the menace. He pointed out that his province is experiencing the worst poverty, unemployment, water and electricity shortage, but the government has never concentrated on the miseries of the people who have already suffered enough from terrorism. He urged the government to fulfil the promises made with the people of Khyber Pakhtunkhwa.
Senator Khalid Soomro said the government should switch over to the system of Islamic banking to run the economy smoothly. He added that the government should control corruption to overcome the economic crisis, give up loans, overcome extravagances and recover money from different defaulters who got their loans written off during different regimes.
Courtesy www.dailytimes.com.pk