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June 8, 2003 Sunday Rabi-us-Sani 7, 1424


KARACHI: Budget disappoints political figures



By Our Staff Reporter


KARACHI, June 7: The federal budget 2003-04, presented in the National Assembly on Saturday by Federal Finance Minister Shaukat Aziz, is a capitalist type budget which, in no way, can be termed a common man’s budget. Although it includes some redeeming features like increase by 31 per cent in the PSDP, elimination of excise duty on paper and paper board, CED reduction by 25 per cent on cement, and an increase in government employees’ salary and pension, it failed to address key areas of unemployment, price hike as well as ways to cope with public sector losses.

These views were expressed by leaders of different political parties in their immediate reaction to the budget speech.

Nisar Khuhro, Leader of the Opposition in the Sindh Assembly, termed the budget ‘inconsequential’ saying that it failed to reflect aspirations of the people whose elected representatives were subjected to humiliating treatment.

In his comments, amid opposition’s continuous slogan chanting in the House, Mr Khuhro questioned the government’s claim of having taken measures aimed at poverty alleviation.

He pointed out that as a result of duties pertaining to edible oil, ghee would cost more and, thus, would hit every household. In addition, he said, people were being burdened by frequent increases in POL prices, and tariffs of different utilities through administrative measures. “These measures are mini-budgets so the government’s claim was misleading, said Mr Khuhro.

He pointed out that the government had not announced any proper package for the common man. He feared that public sector allocations for development projects would be slashed at the time of implementation.

He claimed that NFC had been maintained at old level and share of the provinces had not been increased.

Mr Khuhro said that the manner in which the government had laid a siege around the assembly building, and elected representatives were subjected to humiliating personal search, it turned out to be a budget session in camera.

Mr Khuhro was of the view that government’s behaviour further eroded supremacy of parliament and reinforced doubts about the legitimacy of the regime.

In his remarks, Arif Alvi of Pakistan Tehrik-i-Insaaf said that continuation of subsidy on electricity, i.e. Rs 51 billion, apparently augured well keeping in view the back-breaking power bills being handed to the consumers. Citizens of Karachi, and the whole of Sindh, are not likely to benefit from it. However, he added, the major beneficiaries would be the people of Punjab where most of the tubewells were in operation.

“In a democratic set up, every one expects that the budget document will cover all allocations, including those for defence, and presented for a debate. But, like in the past, this aspect was missing from the budget speech,” he pointed out.

Mian Ejaz Shafi, senior Vice President of PML-N said that due to an uproar in the assembly, the budget speech was not fully audible, but whatever features of the budget he could pick up, did not draw a rosy picture for common man.

Expressing his reservations, he said there was no mention of US$5-6 billion in the budget speech. This amount, he said, usually apportioned for debt servicing and payment of loan instalments.

Likewise, he said, there was no mentioned also of how would one million job opportunities be created when investors appeared shy due to the indifferent attitude of bureaucracy towards guarantee pertaining to their investments.

Dr Mairajul Huda Siddiqui, city chief of Jamaat-i-Islami, said Ťthat the budget seemed to have been prepared as per the aspirations of the IMF and World Bank, instead of people and that it was bound to raise poverty level.

He said the budget provided no benefit to common man from foreign exchange reserves.

Amin Khattak and Shahi Syed of Awami National Party said the budgetŤcould not be termed ‘awami’ as no check on spiralling prices had been ensured.

Syed Qaim Ali Shah, a PPP central leader and former chief minister, rejected the budget as ‘anti-people’ saying it would provide relief to the rich, but hardly decrease economic agony of the poor.

Mr Mamnoon Hussain, Secretary General of the PML-N, Sindh, said that the way parliament was besieged on the occasion of NA budget session was regrettable. He said that the government, instead of adopting intransigent attitude, should have taken the opposition into confidence.

He acknowledged the government’s claim of having imposed no new taxes and the assurance that no mini-budgets would be coming in the new fiscal. “However, keeping in view the record of implementing IMF and World Bank dictates, I am not sure that the government would be able to eliminate poverty, check unemployment and improve economic conditions,” he observed.

Rehmat Khan Verdag, chief of Tehrik-i-Istiqlal, said: “If the economic conditions in the country have improved, as claimed by the government, the budget should have provided relief to the people. But from whatever is grasped from the speech amid desk thumping and uproar, it appeared that alteration in duties had been carried out here and there which, he said, could not bring about any change more than a cosmetic effect on people’s life.

Mairaj Muhammad Khan, condemned the authorities for besieging the Parliament House. He appreciated the sober way of protest demonstrated by the opposition and described it as ‘good for the future of the democracy’.

Commenting on the government’s assurance about no new taxes and no mini-budgets, he said such things sounded ‘traditional claims’ made by every government in the past.






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