KARACHI, June 14: Political leaders have expressed their dismay over the federal budget for 2004-2005 which, they said, was aimed at protecting the interests of privileged class.

Commenting on the federal budget, Sardar Abdul Raheem of the Muttahida Majlis-i-Amal, Sindh chapter, said that the budget had no relevance with the poor of the country except that they were further burdened with price hike.

During the last fiscal, he said, there was 70 per cent rise in price hike while the government had only given a raise of 15 per cent to the government employees, which was a "joke" not only with government employees but also with millions of the poor and unemployed people.

The MMA leader said that there was only 10 paisa reduction in the electricity rate while the defence expenses had been increased by 33 per cent. He pointed out that there was a clear contradiction between the finance minister's claim about poverty reduction and the report issued by the State Bank of Pakistan, which shows 40 per cent increase in the poverty.

Sardar Raheem said that people were being deprived of their fundamental rights including water, power, gas and jobs. Besides, he added, lawlessness was at its peak and there seemed no social justice.

PML-N Sindh leaders Imdad Chandio, Muhammad Haider Shah and Chaudhry Saleem Elahi said that the government had failed to overcome economic crisis. They said that tax-free budget was nothing but to hoodwink people.

There was no good news for unemployed people whose number was increasing every day, the leaders maintained. The government had exploited the helplessness of people by reducing 10 paisas in power rates, they added.

The Pakistan Peoples Party (Shaheed Bhutto) has described the new budget as the "budget of the rich and capitalists" and a continuity of the budgets of previous governments of Gen Zia-ul- Haq, Benazir Bhutto and Nawaz Sharif.

The PPP(SB) spokesman said that the present government had adopted the budget policies of Ayub government and its fate would not be different from that of Ayub's budget.

"There is no provision in the budget to reduce the prices of essential items like fuel, milk, tea, flour, pulses and power rates," he said, adding that the budget is meant merely to benefit the rich and capitalists.

The spokesman pointed out that gulf between provinces had been widening and people of the country appeared to be fed up with the central government. He further said that no new factories and mills were being installed and as such there appeared no possibility of rise in employment opportunities.

He said that the poor were unable to afford even two meals a day while the government had cut duty on vehicles. This reflected government's intention to benefit the rich, he added.

The mode of transport for the common man was train or bus, but, there was no reduction in public transport fares. The spokesman advised people to realize the conspiracies of capitalists and unite to change the system.

SPLA: The Sindh Professors and Lecturers' Association has termed the 15 per cent increase in dearness allowance for government employees 'ridiculous' in relation to the alleged 35 per cent increase in dearness, adds PPI.

These views were expressed by the association's central president, Prof Riaz Hussain and central secretary-general Prof Agha Khalid Pathan, in a press release. They said the recommendations of the Pay and Pension Committee were shelved and a new committee was formed for the purpose.

They demanded of the government that salaries of the teachers be increased by 35 per cent, rent be paid at the rate of 60 per cent, medical allowance at the rate of 30 per cent and conveyance allowance be raised at the rate of 10 per cent.