Speakers at a seminar on 'Present Economic Crises and the Budget 2019-20' expressed serious concerns over lack of relief for people in the fiscal budget despite growing price-hike and soaring cost of living in the country. Institute of Historical and Social Research (IHSR) organised the seminar at Jinnah Medical and Dental College on Friday. Dr Syed Akbar Zaidi, Dr Jaffar Ahmed, Dr Riaz Ahmed Shaikh and Karamat Ali spoke on the occasion.
"With IMF, PTI-led government has negotiated the worst ever program in the history of Pakistan," said Dr Zaidi, adding that the federal budget 2019-20 reflected endorsement of the IMF's preconditions although the final deal between government and IMF was still awaited. He cited that government has increased gas and electricity prices. He said current GDP had been recorded the lowest of the past nine years besides inflation rate gone up to 9 percent this year.
He said devaluation of rupee against dollar also hit national economy badly. Karamat Ali said federal budget 2019-20 was given by IMF. "Government did not even bother to discuss the terms and conditions of IMF in parliament", he said, calling for basic structural reforms to help country's economic growth. Dr Syed Jaffar Ahmed said that 18th amendment has ensured provincial autonomy and it should not be undone.
"National Finance Commission (NFC) award under the 18th amendment has brought financial stability in the provinces," he said. The speakers also demanded the provision of social security services to all the citizens of Pakistan (except for government employees who receive health facilities and pensions) as per universal standard as these services are currently available to only private sector's registered workers with provincial Social Security Institutions, Employees Old-age Benefit Institution and Workers Welfare Fund (WWF).
They also said the government has withdrawn the zero-rated facility of five-exporting industries, including textiles, leather, carpets, surgical goods and sports goods, which may cause closure of the manufacturing units. They apprehended it would render hundreds of thousands of workers. They noted inequality marked Pakistan's economy. They said that for many decades, country's poor segment had not benefited much from growth in national income. They said that now Pakistan's economy again face crisis and the country had to go to IMF for the 22nd time. They said the dollar gap turned too large. The gap is large because Pakistan has opened the doors for imports wide. All the luxury goods that the rich want to use are imported. They said high taxation has caused many industries to close - reducing exports and increasing employment.
They said that high imports and low exports have made dollar expensive. They said government's non-development expenditure - particularly civil administration and defence expenditure - has kept rising. The speakers said that partly, it has tried to reduce the deficit by cutting development expenditure. And partly, it has printed money to fill the gap. The result is that price-hike, inflation and widening balance of trade. They said poor people were paying price for government's refusal to reduce its non-development expenditure.
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