KARACHI, June 10: Almost all opposition political parties and labour organisations, as well as small traders, have rejected the federal budget 2007-08 and the “negligible” relief it offered to the poor class. However, business tycoons, major industrialists and government quarters have hailed the budget as a balanced one.
The Alliance of the Market Associations (AMA), Karachi, said that the budget was only for the rich class, pointing out that no relief was offered to the poor as usual.
At its meeting to discuss the budget, the association noted that the major chunk of funds to be received from all sources would go to the privileged class.
AMA Chairman Atiq Mir described contents of the budget speech as ‘jugglery of words’ and the statistics presented during the speech as ‘a deceitful data’.
He pointed out that the prices of essential commodities had risen to 30-100 per cent since the last budget and, therefore, the 15 per cent pay raise would provide almost no relief to the government employees.
Regarding price cuts on the items offered by the utility stores, he said that the number of such beneficiaries formed not more than five per cent of the population.
Chairman of the Saddar Traders Alliance Talat Mehmood said that the budget contained no planning and allocations to overcome power crisis while the electricity tariff had been raised before the budget.
PPP: The Pakistan People’s Party rejected the budget and termed it ‘anti-poor’ and ‘rich-friendly’.
In a statement issued here on Sunday, PPP Sindh chief Syed Qaim Ali Shah said the budget was bound to cause further price hike and unemployment. He described the price cut and pay raise as ‘an eyewash’, indicated that the monthly budget of a four-member family was no less than Rs10,000 and how could a labourer meet the expenditure with the Rs4,500 wage as fixed by the government.
JUP: Chairman of the Supreme Council of Jamiat Ulema-i-Pakistan Prof Shah Faridul Haq termed the budget ‘a gift to the rich traders, stock brokers, real estate mafia and hoarders’.
He criticised the negligible raise of 15 per cent in salaries and pension of the government employees after effecting a 200 per cent hike in prices of essential commodities.
He observed that the government had disappointed even those who were expecting a relief to common man in the budget in view of the upcoming general election.
NLF: The National Labour Federation said that the budget served and protected the interests of the rich, industrialists and landowners while offering no relief to the poor masses.
In a statement issued here on Sunday, NLF leader Rafiq Ahmed ridiculed the 15 per cent increase in the salaries of the government employees, arguing that considering the 70 to 300 per cent hike in the prices of various essential commodities, the increase offered appeared to be a cruel joke with the workers.
He also expressed concern over the plight of private sector workers, pointing out that most of the salaried class people was associated with the private sector and would get no relief from the government’s pay raise offer.
He condemned the persisting ban on trade unionism and continued exploitation of workers by the public and private sector employers.
The labour leader noted that the government had fixed Rs4,600 as the minimum wage for the unskilled workers but hardly any employer in the private sector would comply with the rule.
He described the 15 per cent increase in pension as “adding to the pensioner’s insult”, and a reduction in the prices of some commodities available at the utility stores as “a fraud aimed at pocketing funds.”
TRANSPORTERS: Chairman of the Karachi Transport Owners Federation Malik Ahmed Khan and others office-bearers criticised the budget and observed that it offered no relief to transporters, agencies add.
They said that the government had neglected the transport sector although it was the most-affected one because of repeatedly increased fuel prices that had devastated transporters.
JAH: The Jamaat Ahle Sunnat, commenting on the budget, remarked that the government was bent upon eliminating the poor instead of alleviating poverty.
In his statement, Shah Turabul Haq Qadri, chief of the party’s Karachi chapter, observed that the failed economic policies of the government had badly affected all sectors.
He noted that the country economic capital, Karachi, had been rendered crippled as the government had failed to avoid load-shedding and keep the business activity continuing. All trade, business and commercial services depended on a smooth and uninterrupted power supply and the government had miserably failed to ensure this, he observed.
He pointed out that in a civilised society, governments would spend heavily for strengthening the social sector mainly in health and education, but in this country, the heavy spending would always be made to strengthen the rich and privileged class.
FPCCI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Tanvir Ahmed Shaikh has hailed the budget 2007-08 as ‘poor-friendly, employment-generating and investment-oriented’.
Talking to media after hearing the budget speech on Saturday, he said the government had succeeded in living up to its promises.
“The initiatives pertaining to poverty alleviation and boost to the industry are worth admiring,” Mr Shaikh said, adding that the steps of bringing down prices of daily use items and making them available at utility stores would result in considerable relief to common man.
The FPCCI chief said that constructing low-cost housing units for the low-income group people would make a positive impact on people’s standard of living. The 25 per cent subsidy in the electricity bills for tubewells would also provide relief to growers, besides helping the government increase the agricultural output. He appreciated the subsidy in DAP which has been raised from Rs400 to Rs470 per bag.
He said the Rozgar Scheme, internship programme and extension of micro credit banking will also help people get employment or a livelihood.
He welcomed the government’s decision of introducing BT Cotton in the country, saying this would bring about a positive change in the textile sector.
The exemption of private equity funds from tax and reduction in Capital Gains Tax from 35 to 10 per cent would pave the way for more investment in the country, he predicted.
Moreover, the government’s decision to continue the tax reforms would enhance businessman community’s confidence in its policies while the move would help achieve the revenue targets of the next financial year, the FPCCI chief said. He thanked the government for accepting 80 to 90 per cent of the proposals put forward by the FPCCI for incorporation in the budget.
A leading businessman, Tariq Saeed, termed it ‘the best budget’ that offered major concessions to general public. He observed that rising prices of food items contributed largely to growing inflation, and the announcement for a reduction in the prices of daily use items would greatly help contain the inflation.Mr Saeed appreciated the increase in government employees’ salaries, increase in pension amount and promotions, saying that this would bring a positive change in the life of middle class, lower middle class and poor class.
Pointing out that the government had achieved all revenue targets during the last four years, he expressed optimism that it would also succeed in achieving the next year’s target.
Another well-known businessman, S. M. Munir appreciated the new budget, and noted that no new taxes had been imposed.
Zubair F. Tufail, Vice-President of the FPCCI said the group taxation facility announced in the budget would enhance the profitability of big industrial groups.
He said as far as the common man is concerned, increase in salaries and pension for the government employees was a good step that would help raise the standard of living.
Appreciating subsidy on tubewell operation and DAP, and the measures to give a boost to agriculture and industry sectors, he said there were, however, some areas to be discussed with the government for consideration.
A former FPCCI president, Iftikhar Malik, also hailed the budget, saying that it would increase the overall investment and business activity in the country.
Eminent scientist and Chairman of the Higher Education Commission (HEC) Prof Attaur Rahman congratulated the government for presenting an excellent and balanced budget.
“For the first time in the country’s history, the social sector is being supported in a big way,” he remarked. He also pointed out that a sum of Rs18 billion had been allocated for higher education, which was an all time high allocation. Prof Atta said this would help strengthen the public sector universities while the private sector universities meeting the HEC criteria could also benefit from the funds.
Adviser to the Sindh Chief Minister Syed Amir Abidi described it ‘a people-friendly budget’, and said reduction in the prices of the items of daily use would greatly benefit people, especially those from the low-income group.
Mr Abidi also hailed increase in the government employees’ salaries and pension, steps for poverty alleviation and creating employment opportunities, considerable allocations for development projects, and measures for giving a boost to the trade and industry.