Mini-budget debate in NA: Opposition alleges government for striking flimsy deal with IMF

ISLAMABAD: The opposition in the National Assembly (NA) on Wednesday rebuked the government over striking a flimsy deal with International Monetary Fund (IMF) and alleged that the economic policies are in a ‘state of confusion’ which is tantamount to the ‘death of economy’.

The opposition benches strongly criticised the government for doing controversial legislation regarding the central bank which it believes would also compromise the nuclear programme of the country whilst vowing to pursue the foreign funding case of Pakistan Tehreek-e-Insaf (PTI).

Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari, while debating on Finance Supplementary Bill 2021, said that the government has been in a state of confusion about whether to approach IMF for taking loans or not.

He said the government had earlier claimed that it would never approach the global lender however it contacted IMF when it was on a weak footing and struck a frail deal.

Read more: Opposition lambastes government over mini-budget

He said the government has been issuing mini-budgets after every two or three months after presenting the federal budget.

PPP chairman said the opposition leader Shehbaz Sharif had put forward the idea of national economic charter but the government refused to pay heed to it. He said if the government had given importance to the opposition, it could have claimed before the IMF that the opposition leader is not convinced of the agreement.

Bilawal said the economic indicators have never been so poor in the history of Pakistan, adding that it never happened in the country’s history that the growth rate became negative except PTI’s term.

He said currently, there is record inflation, joblessness and poverty in Pakistan.

Bilawal added that the government is trying to impose new taxes worth Rs350 billion through the mini-budget.

He said the government is imposing 17 per cent tax on crude oil besides imposing tax on vehicles that are assembled locally.

He said the Information Technology (IT) sector got the potential of expansion but it would be hampered due to imposition of taxes on the internet and cell phones while noting that 15 per cent tax is being imposed on mobile prepaid cards as well.

Bilawal said that the government is planning to impose taxes on computers and laptops and 17 per cent tax is being imposed on poultry, cotton seed, red chilies, and hybrid seeds. He added that the government is also levying taxes on charity and donations.

Bilawal said 17 percent tax is being imposed on the machinery which is required to handle some natural calamity while solar panels are also being taxed.

He said there is a high trend of HIV-Aids in the country and the government is levying taxes on contraceptives as well.

He demanded 100 per cent increase in the salaries of government employees citing rise in inflation and also demanded that restrictions on the award of minimum wage should also be removed.

Read more: Government focusing on exports, tax collection to boost economy, says PM Imran Khan

He said there is an artificial crisis of urea in the country and the farmers are being forced to purchase the product from the black market.

PPP chairman said the government is handing over the financial resources of public hospitals to private hospitals and private insurance companies in the name of health cards.

He added the government is also doing legislation on the State Bank of Pakistan (SBP) to make it dependent on international financial institutions. He said the SBP Bill would restrict the government from borrowing money from the central bank.

Bilawal also expressed that the government must show discipline in borrowing money from the SBP. However, if there is a compulsion, he said the government should borrow it from the commercial banks.

He said the salary of the SBP governor is being fixed at Rs15,000,000 and his term is being enhanced to five years from three years.

He said the defence expenditure would have a single account in the SBP which would expose the nuclear programme of the country to the world.

He demanded that the assets of the National Accountability Bureau (NAB) chairman and its officers should also be made public and vowed to pursue the foreign funding case of PTI.

Further, Balochistan National Party (BNP) President Akhtar Mengal raised the issue of extrajudicial killings in Balochistan and said that 250 bodies were recovered from a single mass grave in the province.

He claimed Counter-Terrorism Department (CTD) killed 19 persons and declared them terrorists while questioning that it got no retaliation of any sort from them.

He said the residents of Gwadar are protesting against joblessness and their homes have been badly flooded.

He said the coastal belt of Balochistan belongs to the people of the province and added that there has been a loot-sale of the resources of the province.

Mengal said there have also been talks of Southern Balochistan while there is nothing like it in the constitution and termed the division of Balochistan out of question and said that it was one, it is one and will remain undivided.

He said the government got the mandate to make South Punjab a separate province but there has been no development on it.