March 12, 2008	Wednesday	Rabi-ul-Awwal 3, 1429

ISLAMABAD, March 11: PPP co-chairman Asif Ali Zardari has said the party’s government will hold inquiry into the allegations of sugar mill owners fleecing the growers by not paying full price of sugarcane to the growers.

He said this when his attention was drawn by MNA Syed Inayat Ali Shah from Chiniot in the meeting of the MNAs-elect with him, says a handout here on Tuesday.

Inayat Ali Shah said that he had proofs that mill owners were not paying full price and depriving the growers of their dues up to 40 per cent.

Expressing concern over the reports, Mr Zardari said the PPP government would take strict action against the sugar mill owners if found guilty of robbing the growers. He said the PPP was committed to the welfare of the poor and the farmers and would not tolerate the robbing of the growers at the hands of big business and industry.

Mr Zardari also said the PPP government at the centre would approach the Punjab government to give district status to Chiniot tehsil.

TRADE DEICIT: In a separate statement, PPP information secretary Sherry Rehman expressed concern over the deteriorating trade indicators as the country struggled with the highest trade deficit in its history, just when the new PPP-led government was set to take office this month. The trade deficit soared to $12.433 billion in the first eight months of the current fiscal year, surpassing the trade gap target of $12bn (export target of $19.2 billion against calculated imports at $32 billion) set for the financial year 2007-08.

Ms Rehman said that her party would inherit a trade regime riddled with bad policies and misplaced priorities. “For the last five years, we have been constantly raising the issue of deep flaws in the existing trade structure to a disinterested audience in the parliament. Sadly, the latest figures confirm our worst fears,” she said.

She said a major chunk of Pakistan’s imports comprised luxury goods. Last year, she said, the country paid over $2bn for import of mobile phones and other luxury items. She condemned the absence of initiative to widen the export base and lower its dependence on imports in the last decade.

“The regime had eight years at its disposal to do the task. It wasted all these years pandering to vested interests. No effort was made to expand the country’s industrial base to allow local production of a number of importable items. The so-called investment pouring in the country in the past eight years mainly came in the financial and services sector. Nothing was done to invest in the human resource development of the country nor did the regime make any attempt to direct foreign investment to boost our export sector,” she added.

Ms Rehman said fixing the distortions in the economy would be the first priority of the PPP-led government. “The next few months may spell bad news for the economy as the house of cards set by the previous regime falls apart. Once again, the PPP has been given the arduous task of putting in order a highly unbalanced economy.