Terming the Finance Supplementary (Second Amendment) Bill, 2019 a budget of 'quasi-comprado capitalists,' former Chairman Senate Raza Rabbani on Friday accused the government of announcing budget for the fiscal year 2019-20 five months before time. Taking part in a debate on Finance Supplementary (Second Amendment) Bill, 2019, he said that though this mini-budget caters the big business tycoon, the government also announced fiscal budget for fiscal year 2019-20 five months before time.
"The June-July for 2019-20 budget has been announced now, which is happening for the first time in history of the country. The super tax abolishing on non-banking companies, the green field project, tax exemption on companies' profits, which is not shared with stakeholders, the bank on giving minimum dividend, the reduction in profit earned from the funds provided by banks from 35 percent to 20 percent on houses, SMES, small loans and agriculture loans, etc, all these will be applicable from 2020," he added. Rabbani said that all big business houses had opened their door for election campaign of the incumbent government ahead of July 25 general lections last year.
"And big business house like the Abraajs, the Dawoods helped the election campaign of this government, as a result, if you can analyse the election results, two new classes emerged - first class is the big businessmen who made it to Parliament as MNAs. The second class is of expatriate Pakistanis, who retuned home to contest elections," he added.
Given the situation, he said it is a class-oriented budget and a budget of "quasi-comprado capitalists" which helped the incumbent government and are also present in the Cabinet, adding the reform package was given by keeping in view the interests of big businessmen and their cronies.
He said the message is quite clear as the reforms on which the government is working on are decades old, which it introduced in the mini-budget to favour the big business tycoons by completely ignoring the poor and professional class.
"In a meeting of the cabinet a day ago, the government conveyed a clear message that it's anti-labour, and will be there to protect the interest of the businessmen which is reflected in ban on trade unions. The cabinet banned all trade activities in PIA, which has already been militarised, and Security Printing Press," he lamented.
He continued that by invoking Essential Service Act, the government made it clear that it is there to protect the industrialist class and will crush the labour class, adding in less than six months it is the second budget, and old NFC Award is intact, which is open violation of the Article 160.
"New funds are being generated but NFC is not announced, and the provinces are not being given the funds [and] the NFC was never announced whenever there is either a direct or indirect military rule in the country and this is happening today," he lamented.
He said State thinks that all these funds are reducing the federal kitty, and to be more precise: "Major hurdle in front of the federal government is clause 3-A of Article 160, which states that the new NFC will not less than the older NFC."
"And these rulers have the habits of Gen Musharraf who had brought down the share of the provinces from 57 percent to 43 percent, so we're moving in that direction. We must keep this in mind that throughout in these mini-budgets there was no mention of NFC Award, but Article 158 was also openly violated...Sindh, which is the largest producer of gas, is not being given gas," he decried.
He also negated the government's claim of not getting any dictation, saying Finance Minister Asad Umar must stop claiming that the government is not on its knees as it is already on its knees, which is reflective from the back to back visits of IMF teams.
Rabbani said though the government remained tight lipped about IMF teams visits, the team while leaving the country told media that it wanted gas price hike, increase in electricity prices, privatisation and increase in taxes, and the government exactly did the same.
Despite implementation of all the four conditions put forth by IMF team, he added, the government claims all these are home grown recipes, but in fact, it is dancing to the tune of IMF.
"Soon after elections, Asad Umar, who was finance minister in waiting then, had openly said the government had no option but to go to IMF, and then he has been taking strategic U-turns on this issue, and today, we're doing all this at our own, is not true," he regretted.
He continued that there is an amnesty clause in the mini-budget, and that has especially been introduced to benefit the overseas Pakistanis, who staged a comeback and are now working as MNAs, MPAs and senators.
"Mr Chairman, this is nothing new as whenever state includes a political system in the incubator, it has to give such amnesties. This is what dictator Ziaul Haq did by introducing development fund to facilitate these people. Gen Musharraf also continued it and this government is also pursuing that policy to appease the new political class," he maintained.
Senator Mushtaq Ahmed of Jamat-e-Islami also criticised the government for not paying any heed to the skyrocketing price hike in the country and facilitating the industrialist class in one way or another.
Senator Azam Swati of ruling PTI was all praise for his party government, saying the reforms are introduced to bolster the economy and encourage the foreign investors.
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