KARACHI: Political parties have entered the arena of power game with slogans of betterment of the people, carrying special economic programme to improve the ever-declining economic health of the masses of this country.
General elections are the only period of one or two months when poor of this country hear something about them, promises to remove unemployment and sympathy that shows deep wounds in the hearts of the political elite who wish to rule this country. But the most important part is the absence of any well thought out economic plan which may speak about the strategy to achieve the goal in accordance with the agenda of the party.
The two major political parties have announced their agenda, including economic plans, and both of them promised prosperity, employment, war against corruption and economic facilitation for the poor masses of this land.
Both the major parties, People’s Party and Pakistan Muslim League-Nawaz ruled this country twice, but the perception is that they failed to deliver their promises in the past.
For them to achieve what they have promised it is absolutely necessary that the financial sector continue to performs well.
During the last five years, the financial sector showed muscles and proved a catalyst for economic growth of seven per cent.
The backbone of the financial sector, the banking grew remarkably as conditions were made conducive for its development during the last five years. The government privatised all but one bank. Now over 80 per cent banking is in private sector and the influence or fear of government influence has reduced to negligible level.
The State Bank, which got the autonomous status during the last regime, was the prime target of government influence before the autonomy. Still the State Bank takes some decisions which support government. The bank defends its stance for it said, A central bank works in coordination with the government.
When asked if there is fear that the next political government might try to influence the State Bank, the answer was in negative.
Under the State Bank of Pakistan Act, 1956 (as amended from time to time), the central bank is an autonomous institution. Hence, there is no possibility (or fear) of any kind of political interference in the affairs of the State Bank, said a written reply from the State Bank.
However, the commercial banks were not ready to comment on this situation, sighting the issue as highly sensitive.
They said whichever government comes into power, banks will have to work with them without showing any bias or fear.
However, banks accept that to some extent, they have to accept influence as a number of politicians who reach the parliament are used to be high-profile clients of banks.
They say Shaukat Aziz, a known Citibank employee, remained prime minister for over three-and-a-half years, while another banker Mohammedmian Soomro is the caretaker prime minister.
It all shows the reach of the bankers and influence of the government in the banking sector. They say still political appointment in banks, loans to favourite aspirants, loans at reduced rates and other facilitations are provided to the influential.
Now bankers have strong lobby in the government and will have strong representation through their high-profile clients in the next government, too.
Bankers said the acceptance of political influence to some extent is neither one-sided nor it hurts the interest of the banks.
Fund managers of banks have been tasked to have good connections in the high-ups of the would-be government and it would be translated into the benefits of banks.
