KARACHI, Oct 15: Pakistan People’s Party has demanded of the western governments that they should link economic relief for Pakistan with the restoration of democracy in the country.

This was decided at the central executive committee of the party which expressed concern over what it said the collapse of national economy.

The committee also considered the dismissal of Benazir Bhutto and “continued denial of democracy” to the people of Pakistan.

It said the economic activity should be people-centred which is only possible in a democratic system. “People of Pakistan be the agent of change and also its main beneficiaries,” it added.

According to the PPP, the policies of privatization, retrenchments, repeated increase in prices of utilities, pre-production heavy taxation, have only deepened recession and shaken up investors’ confidence.

“It is a pity that while western governments are pumping billions and billions of dollars in their economies in order to kick-start them after the events of the Sept 11, we are continuing on the same old pattern and the state is keen on following policies which the western countries have already discarded,” it said.

The party said the real incomes are at their lowest levels and there is too little money going around. Production, exports, retail sales, services, every sector of economy, are in a shambles.

In view of the situation, the party said, the public sector be made to play its positive role in breaking the cycle of recession, restarting economic activity and restoring investors’ confidence.

It demanded immediate initiation of a large public sector development programme, restarting closed industries, establishing new industrial units, stopping retrenchments, putting a freeze on prices of utilities and fresh taxes, making water supplies available at the correct time to farmers.