Business community and political activists have reacted sharply over the decision of Pakistan People's Party (PPP) led government seeking financial assistance from International Monetary Fund (IMF) and said it will cause more problems for the business community, apart from bringing fresh wave of price hike in the country.
They said the government must ensure judicious use of funds to be received from IMF, as wastage of amount on non-developmental expenditures would be a 'criminal act' and nation would never forgive the rulers. It may be mentioned that Adviser to Prime Minister on Finance Shaukat Tarin on Saturday announced that the International Monetary Fund (IMF) would extend $7.6 billion to Pakistan under a 23-month loan programme. The IMF will provide this loan under standby credit limit at interest rate ranging between 3.51 and 4.51 per cent and its repayment will be made in five years beginning from 2011.
The former President Lahore Chamber of Commerce and Industry (LCCI) Mian Anjum Nisar told Business Recorder that the IMF loan would have devastating effects for the business community, as with more taxes, increased rates of utilities and cost of production would further increase. This will thus render Pakistani exports non-competitive in the globalised competitive environment, he feared.
Anjum Nisar further said that the government had already accepted some conditions of the IMF before formally seeking financial assistance package. He said the IMF loan package will bring negative effects for the businessmen, as after entering into agreement with the IMF, the government would have to accept its tough conditions.
The business community is already suffering due to tough business environment, as interest rate is declining world over while it has further been raised in the country, which is 'harsh' for the business community, he added.
Pakistan Muslim League-Nawaz (PML-N) Central Finance Secretary Pervez Malik told this scribe that financial assistance package of the International Monetary Fund (IMF) will bring more problems for the countrymen, as tough conditions of the IMF would have to be accepted by the government.
He asked the government to debate the matter of financial assistance from the International Monetary Fund (IMF) in the Parliament to evolve a firm policy to ensure judicious use of the amount of IMF loan. In this regard, he also proposed constitution of a parliamentary committee to ensure that not a single penny of IMF loan is used on non-developmental expenditures. Malik also said that on one side country was facing economic crisis while on the other hand non-developmental expenditures have been increased. After getting loan from the IMF, not only rates of existing taxes would be increased but also people would have to face the burden of new taxes.
Another PML-N Leader Sheikh Kaiser has said that the downfall of national economy is result of judicial crisis, which unfortunately could not be resolved despite restoration of democracy in the country. "The policy of seeking loans from institutions like IMF played havoc with country's economy in the past and this policy will not help in overcoming unemployment and poverty in future," he said. Kaiser said that overseas Pakistanis can make investment of $100 billion in the country, if the government restores judiciary to pre-November 3, 2007 position.
He said no entrepreneur would invest his money in Pakistan without independence of judiciary, rule of law and sovereignty of parliament is ensured. Sheikh Kaiser said overseas Pakistanis are greatly perturbed over political and economic instability and violation of country's sovereignty by US led forces attacking innocent people in tribal areas. He said: "We can get rid of foreign loans and pressure by ensuring conducive environment for investment'.
Jamaat-i-Islami Pakistan Amir, Qazi Hussain Ahmad in his reaction said that the people would not be benefited by the IMF loan, as according to him, the rulers would continue lavish spending. He regretted that the nation was being pushed into the clutches of the IMF, while the country was already facing problems due to policies pursued during the tenure of former Prime Minister Shaukat Aziz. He also lamented the rulers for not bringing back their money kept in the foreign countries. He was of the view that a debate in the parliament must be arranged on the issue of the IMF loan so that amount could be spent judiciously.