ISLAMABAD, May 17: The government told the Senate on Wednesday that inflation in the country was showing a downward trend and would be kept below eight per cent, contrary to a grim picture given by the opposition during a two-day debate.

Minister of State for Finance Omar Ayub Khan blamed inflationary pressures mainly on higher world oil prices and economic activity within the country after a period of recession as he wound up the debate on the economic and price situation in the country.

But quoting figures from the State Bank, he said the inflationary trend was going downwards because of continuous efforts of the government and added: “Now our target is to keep it below eight per cent.”

The minister painted a bright picture of the country’s economy which he credited to the policies of President Pervez Musharraf and Prime Minister Shaukat Aziz, but cited no immediate relief from the current wave of high prices of essential commodities for which opposition senators blamed the government during the two-day debate.

Mr Ayub disputed comparisons made by some opposition senators showing the price situation in Pakistan was worse than in neighbouring India and Bangladesh and cited his own figures from India giving a contrary picture of the prices of wheat, wheat flour, rice, sugar and petroleum products.

“If you want to see poverty go there,” he remarked about India but in an apparent complaint about a perceived lack of caution by Pakistani opposition, he said the Indian leaders would not talk against their own country with others.

Wednesday’s discussion late in the evening, which was delayed by an extended question hour, was a dull affair compared to Tuesday’s fiery speeches and the 100-seat house was left with a sparse attendance when the minister gave the government’s response with only seven senators on the government benches and as many on the opposition side.

Former finance minister Ishaq Dar of the Pakistan Muslim League-N was the main opposition speaker of the day who said the coming budget should focus on the common man unlike what he called pro-elite previous budgets of the present regime.

He said the present government’s policies showed no indication of priority to the poor man’s problems, although he called President Musharraf’s latest statement about the need to tackle price hike as an admission of what the opposition had been saying.

Newly-elected Senator Zaheeruddin Babar of the People’s Party Parliamentarians complained of what he called the prevalence of “police raj in the daytime and dakoo raj at night” as a consequence of President Musharraf’s government and called for restructuring the pay scales of government employees in the light of the persisting inflation, enforcement of a price control law and cut in the government’s non-development expenditures.

Mrs Rozina Alam of the ruling Pakistan Muslim League proposed opening more outlets of utility stores throughout the country to provide necessary items at fair prices.

Usually pro-government Dr Abdul Malik from the Federally Administered Tribal Areas called government’s claims about economic progress faulty and, in a reference to conditions in the ruling coalition, said: “When the time will come for Caesar to go, all of them will become (like) Brutus.”

PML’s Javed Ali Shah said the government must use an iron hand to deal with what he called “hidden hands” creating artificial dearness and also proposed giving India the most favoured nation treatment in trade to create a healthy competition in the market.

Rehmatullah Kakar of the MMA said he was sure the opposition’s suggestions would go to the dustbin but still proposed shifting what he called “unjustified taxes” from other sections of the population to capitalists.