-Asad Umar points out lack of focus on circular debt, heavy borrowing
-Govt lawmakers hail ‘tax-free’ budget aiming 6.2 per cent growth rate
ISLAMABAD: As the National Assembly witnessed low attendance on Thursday and the lawmakers from both sides of the political divide showed a lack of interest in the budget speech, the leader of Opposition Syed Khursheed Shah looked ill-prepared on the budget details too, Pakistan Today observed.
However, members of Pakistan Tehreek-e-Insaf (PTI) among the Opposition benches looked on purpose during their threadbare discussion on the budget as they blasted the federal government over presenting a hotchpotch budget without any clear direction.
ASAD UMAR STEALS THE SHOW:
It was PTI’s Asad Umar who stole the show with his deep understanding of the budgetary allocations and the detailed analysis of the next year’s budget presented by his fellow Karachiite businessman, Miftah Ismail, the finance minister.
Prime Minister Shahid Khaqan Abbasi also attended the proceedings but left the House as soon as the lacklustre speech of Khursheed Shah ended.
Asad, during his speech, claimed that due to heavy borrowing by the government of Pakistan Muslim League-Nawaz (PML-N), the country’s foreign debt has touched an unprecedented Rs 12,000 billion.
Umar said the growth rate shown by the government was ‘unrealistic’ and the target fixed for next year was also beyond reach as indicated by the top economic experts and world financial institutions like International Monetary Fund (IMF).
‘CIRCULAR DEBT, REFUND CLAIMS NOT MENTIONED’:
“The circular debt has risen to Rs500 billion, but there is no mention of it in Pakistan Economic Survey and no budgetary allocation has been made in the budget to repay it. The refunds of Rs400 billion were also not mentioned in budget,” he said.
The PTI leader underlined the need for reducing indirect taxes, saying that people were paying about 51 per cent on purchase of sugar. He said that the investment recorded an average growth of 15.5 per cent during the last five years, which was lowest in the history of the country, adding that the exports of the country also remained stagnant during the last five years while the trade deficit expanded from $20 billion to $40 billion.
Asad Umar said debt during 1998-2008 increased by Rs3,000 billion, while in 5 years of Pakistan Peoples’ Party (PPP) government it increased Rs10,000 billion and during the current regime, the debts increased by Rs12,000 billion.
External debt witnessed increase of $5 billion 1998-2008, $17 billion while in PPP government, it increased by $17 billion and during the five years of incumbent government, the external debt increased by $33 billion, he added.
He said that there was 7,000-megawatt shortfall as on May 1, 2018, which was the same as in 2013. He said that the government had failed to create employment opportunities for the youth.
Umar added that the public entities, including PIA, Pakistan Steel Mills, would not be able to return loans worth billions while the performance in production of electricity and industries was almost nil in the country. He said the government had imposed taxes on the masses.
Dr Arif Alvi of PTI said that the circular debt and refund claims were not mentioned in the budget. He called for announcing a special package for Karachi in order to address the water issue of the port city.
He said water tanker mafia was active in the city and the people were being forced to purchase water through tankers. He alleged that people of his constituency were being punished for not giving vote to their political rivals.
‘TAX-FREE BUDGET’:
PML-N member Qaiser Shaikh said that the government had given a tax-free budget, aiming at 6.2 per cent growth rate. He said that all the political parties unanimously endorsed the reduction in taxes, which was a great achievement by the government and would be written in golden words.
He said that the growth rate during fiscal year 2017-18 was recorded at 5.8 per cent, which was highest in 13 years. Shaikh said that the inflation has reduced to the lowest level of last 30 years while the government had given many incentives to promote agriculture sector, resulting in growth of 3.8 per cent of this sector during FY2017-18.
He said that the government had also taken measure to check undervaluation of real estate. Stressing on the need for developing a consensus on long-term economic plan to lead the country towards progress and prosperity, Shaikh said that the metro bus and orange train projects have benefited poor people more than the rich ones, as poor were using these services for travelling from one place to another.
Naeema Kishwar of JUI-F criticized the PTI for failing to deliver in Khyber Pakhtunkhwa, saying that the federal budget was a better fiscal plan. She said that focus on agriculture and industrial sector in the federal budget 2018-19 was a positive measure, which would have a good impact on the economy.
She said that binding on non-filers that they could not purchase property worth over Rs4 million was also good measure. She also underlined the need for interest-free investment and banking system, adding that the resolution already passed in this regard should be implemented to eliminate the interest-based system.
Federal Housing Minister Akram Durrani said that improvements have been witnessed in the management of G-13 and G-14 sectors of Islamabad while responding to some observations raised by Asad Umar.
OPP HIGHLIGHTS SHORTCOMINGS:
Lal Chand of PTI said no relief was announced for the general and poor masses in the federal budget. He said Sindh produced 70 per cent gas of total country production but still many areas have not gas facilities.
He alleged that neither federal nor provincial governments took any pragmatic steps for the development of Tharparkar.
Asia Nasir of JUI-F said there should be education emergency in the country to steer the country into the right direction. She said despite tall claims of central and provincial governments no concrete steps were taken to construct dams and overpower energy crisis in the country.
She also regretted that women parliamentarians were ignored during last five years and no development funds were released to them.
Engineer Hamidul Haq of PTI said that the federal government completely ignored Khyber-Pakhtunkhwa during last five years and no mega project was started in the province.
Khalil George said the budget was always prepared keeping in view country’s situation rather than as per people aspiration. He said the priority should be given to health, education and safe drinking water.
OPP LEADER CALLS BUDGET ANTI-POOR:
The leader of opposition Syed Khursheed Shah, in his hour-long speech, said that the government has imposed new taxes on masses. “The PML-N government had strongly opposed levy tax in its government era now it has imposed this tax on masses in its own budgetary proposals,” said Shah, mentioning that the government institutions should respect each other and avoid encroaching limits.
He said chairman FBR chairman should be appointed through parliament. The circular debt has increased manifold due to poor policies of this government. “We need to contemplate over important national issues to provide proper relief to masses,” he said criticizing treasury lawmakers for not participating in the budget session.