KARACHI, May 13: Speakers at a meeting of the Shura Hamdard, Karachi chapter, urged the government to introduce rationing system of petrol to bring down oil prices. The moot with the theme of “National Budget 2005-06: Reservations, expectations and challenges” was presided over by Major General (Retd) Ghulam Umar at a local hotel on Friday.
An economist and columnist, M.A. Sabzwari said that the government should reduce non-development expenditure such as purchasing of costly motorcars for ministers and high-ranking officials; excessive use of telephones on government expenses; foreign tours by the unnecessary large-sized delegations. He said that the money thus saved should be spent on health and education of the masses.
He said that the main reason of price hike of daily use commodities was the increase of prices of petroleum and its products, which was beyond the government’s control. However, the government could control it by introducing rationing system in sales and purchases of petroleum, he said. “In such a way government can control prices of petroleum and save foreign exchange,” he added.
Mr Sabzwari was of view that government could provide comfort to public by reducing the rate of sales tax, fixed development surcharge, petroleum development surcharge, and excise duty. On the petroleum, the government had increased the rate of interest on loans, but did not increase the limited rates of interest on national savings and banks deposits, he said, suggesting that the government should increase the rates of profits on bank deposits and national saving schemes.
He said that there was an eight per cent inflation of money now and if Rs100 were deposited in a bank last year, their value would now be reduced to Rs92. “Some banks also used to deduct a certain amount from the deposit if it remained less than Rs10,000,” he commented.
The economist said that in view of increase in cost of living it was essential that an increase in pensions be made in coming budget.
He was of the view that the government could earn handsome money by levying the tax on sale and purchase of properties and state dealers. The budget, which was helpful to agriculture and industry, was really a public-friendly budget, he said, adding that the price hike and inflation did affect most to the salaried people and fixed income groups. He said that the government should take steps in coming budget to give relief to these groups.
Dr Amjad Jaffery suggested that the government should take the advantage of services of those Pakistani scientists, who had abilities to produce electricity from sea waves and solar energy.
Abdul Haseeb Khan, President Korangi Association of Trade and Industry and Chairman Brooks Pharmaceutical Laboratories, said that the property deal should be made conditional to NTM number, as no tax was being paid on such deals and only 1.34 million people were paying income tax in this country. The sales tax should be imposed but at the rate of five or six per cent and distribution system of Zakat be made a part of the national budget. “A development board on the pattern of Punjab province should be established in Sindh as well, as these boards were playing a good role in promoting industry,” he said.
Abdul Haseeb said, “We should change our overall attitude towards education, commerce and industry, otherwise we would continue to become a market for foreigners, because under the regime of WTO, no one cold stop the flood of foreign goods and commodities coming into our country.”
Anwar Aziz, a banker, said that tax should be imposed on consultants’ income and small and medium size enterprises be provided with opportunity to flourish, as it was the only way of the economic revival. “If you don’t go to the poor, they will come to you,” he said, adding that if basic facilities are not provided to the poor they would be compelled to snatch.
Sadia Rashid, Anwarul Haq, Col Mukhtar Ahmed, Dr Mirza Arshad, Akhtar Begana, Dr Naeem Qureshi and Aftab Ahmed Zaidi also spoke. —PPI
