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| May 30, 2005 | Monday | Rabi-us-Sani 21, 1426 |
Mukhtar wants ST reduced, food subsidy
LAHORE, May 29: PPP leader and former commerce minister Ahmad Mukhtar demanded on Sunday that the government should reduce sales tax on petrol, electricity and gas in the coming budget. The step, he said, would force the private power producers to bring down their rates and the transporters to reduce fares.
The federal budget for 2005-2006 is scheduled to be announced on June 6.
Mr Mukhtar said, while talking to Dawn, that the government should also announce a subsidy on food items to help the poor to survive. He said at present 40 per cent people were living below the poverty line and needed immediate relief.
He said the agriculture and industry needed special attention to meet the growing food requirements and provide jobs to the unemployed. Along with such steps, he said, there was also a need for a democratic setup without which no country could make a formidable progress.
Disputing Prime Minister Shaukat Aziz’s repeated claims that Pakistan was ready to take off, he said: “If the country has not been able to take off during the past five years when Mr Aziz was the finance minister, how will it do this now.”
He said the government insisted that the growth rate stood at eight per cent while the inflation rate was 11 per cent. This, he said, meant the actual growth rate was minus three per cent, which was not a good thing for any country. He said the situation in the neighbouring India, China and Bangladesh was far better as compared to Pakistan’s.
He said it was being trumpeted by the government that the stock market was doing well, and the increase in the real estate prices showed the country’s economy was making a rapid progress. He said even if the claim be accepted, it only meant that people with resources would be benefited by the situation.
Terming the government claim that the country’s exports would exceed $12 billion this year an exaggeration, he said Afghan-istan’s share had not been kept in mind while making calculation. If that be taken into consideration, he said, the actual exports would come down to $11 billion.
He said it had been estimated that the trade deficit would go up to $6 billion, which would be the highest ever in the country’s history. Even foreign remittances would not be able to bridge the gap, he added. In his opinion there was little hope for growth in the automobile and housing sectors during the next year because of the increase in the dollar value against the rupee.
He said the government would have to reduce the PSDP size from Rs300 billion at present because of the funds’ shortage. In case of lavish spending, he warned, the inflation would hit the sky.
Mr Mukhtar said the government would have to take stringent measures to improve the law and order situation, without which industrialization was not possible. He expressed his dissatisfaction over the state of agriculture in the country as no new lands were being brought under the plough nor attention was being paid to research.
The PPP leader said every year the government raised the support prices of various crops, as a result of which the growers got better returns even if there was no increase in production. He warned that the country could face acute food shortages in the times ahead if the production was not raised to meet the requirements of the growing population.
He proposed that the government should offer incentives to the PhD degree holders comparable to those offered to consultants in various ministries, so that they could utilize their capabilities to serve their country.
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