Major opposition parties in the parliament have accused the federal government of not taking them onboard in the budget preparation for fiscal year 2017-18 and vowed to expose its flawed policies and poor economic indicators during the budget debate. The Pakistan Muslim League-Nawaz (PML-N) government has, however, the required numbers in the National Assembly to get the budget passed easily, but may face severe criticism from opposition parties on major economic indicators including soaring debt burden, widening trade deficit and falling foreign remittances.
Former Finance Minister and senior Pakistan Peoples Party leader Saleem Mandviwala told Business Recorder that the opposition had requested the government to hold pre-budget meetings to take their input in preparation of a balanced and people friendly budget, but this has not happened.
He said that all economic indicators have been showing poor performance including exports, debt, revenue collection, foreign remittances, and imports. Mandviwala said that the PPP would give tough time to the government in the parliament and would try its best to get its people friendly recommendations accommodated in the budget, besides exposing its flawed economic policies.
The PPP is going to release its shadow budget on May 19 with recommendations for the government on how to reduce current account deficit, trade deficit, increase exports, tax collection and GDP growth. Talking to Business Recorder, Dr Arif Alvi, senior leader of Pakistan Tehreek-e-Insaf (PTI), said that the federal government is running the country on expensive external and internal borrowings. He said that the country's external debt has reached $76 billion with an increase of $14.5 billion only in the last two years.
The country's exports and remittances are in downward trajectory while imports are at an all time high, he said, adding that economic indicators are not good as trade deficit has widened to historic level.
Alvi accused the government of planning to fund 2017-18 budget mainly from external and domestic borrowings; however PTI, he added, has devised a comprehensive strategy to give the government a tough time and expose the flawed economic policies of the government in the upcoming budget.
MQM MNA Syed Ali Raza Abidi told Business Recorder that his party would grill the government in parliament on the budget for 2017-18, especially the China-Pakistan Economic Corridor (CPEC) investment for which Pakistan has committed 18 percent return to Chinese banks and investors. "The government should have asked Pakistani businessmen and investors to invest in CPEC on the guaranteed 18 percent return instead of getting loans from Chinese banks," he said, adding the Chinese investment would have a major negative impact on the country's economy if things are not handled wisely and carefully.
Abidi said the government has badly failed in boosting exports and tax collection, resulting in current account deficit and increased foreign debt. He said that his party has completed the draft of a shadow budget for next fiscal year and would release it to the media in the next couple of days.
He said that his party would also question the government's performance on creating job opportunities for youth and improvement in education and health related facilities for the common man, besides demanding reduction in rate of General Sales Tax and Income Tax.
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