Minister of State for Finance Hina Rabbani Khar on Thursday informed the Senate that the country faced a net loss of $10 billion due to the recent devastating floods, which shook the national economy and also increased prices.
Winding the Senate's debate on the resolution of PML-N's Ishaq Dar regarding the prevailing state of economy in the wake of devastating floods and price hike, the Minister of State said the government, which inherited weak economy in 2008, was not only making strides in managing the situation, but reviving the floods created hazards in the process.
She said the government has decided to impose Reformed General Sales Tax (RGST) and the flood tax with an objective to raise more funds to provide support to the flood affectees. She said that the government would collect billion of rupees by imposing flood tax on salaried class, which would be utilised for the rehabilitation of the flood affectees.
Khar said that the government was taking measures to revive the economy and to ensure tightening of monetary and fiscal policies besides overcoming inflation. Referring to price hike of essential commodities, she said the government was taking serious measures to bring down the prices but due to serious economic challenges the people were facing enormous problems due to price hike.
Regarding flood devastation, she said the country's agriculture sector suffered an estimated loss of Rs 5 billion, the property suffered Rs 2 billion loss, while public infrastructure faced a loss of Rs 3 billion due to the floods. She said after having negative economic growth during the last two years, the government was hopeful to move forward with a four per cent growth this year.
But she said huge losses due to floods especially to agriculture sector have created enormous challenge to overcome the situation. To the demand of some opposition members regarding austerity measures, she said that the government has curtailed the foreign tours so as to curtail burden on the national exchequer as well as promote self-dependency. She further said that Pakistan Electric Power Company (Pepco) was being dissolved due to the huge subsidy being paid from the national exchequer to the company.
Similarly, she added that the government has decided to curtail the ministries for resource mobilisation adding that total current expenditure on running civil government affairs was about Rs 165 billion.
While defending the government decision of hike in petroleum products' prices, Khar said that the increase is in accordance with the formula passed by the Parliament. She said that the federal government was committed to the rehabilitation of the flood affectees and it has raised Rs 40 billion from within the country to disburse them among the affectees for relief and reconstruction.
As part of the assistance, she said that the first instalment of Rs 20,000 was given to each flood affectees family while the next installment of Rs 80,000 will be provided by the federal government under 'citizen damage compensation programme'. She said overall the government would disburse Rs 160 billion cash among the flood affectees for the relief and reconstruction of their houses. She said that the donor agencies have assured to extend additional assistance in 26 sectors on the call of the government of Pakistan adding that the government has urged the donor agencies to continue their existing support programmes at national and provincial levels so as to properly deal with the rehabilitation of millions of people.
Earlier, senators belonging to various parties joined hands to assure full support to their colleague Hamayyun Khan Mandokhel, who elected to the House on independent seat and is currently having a row over occupation of federal lodge in the Parliament Lodges with a PML-Q lady MNA Marvi Memon.
Mandokhel, while speaking on a point of personal explanation, said that he never wanted to bring the issue in media, but he accused Leader of Opposition in the National Assembly Chaudhry Nisar Ali Khan of negatively highlighting the matter, which forced him to explain his position.
He explained that a lodge was allocated to him in the Federal Lodges, but it was being occupied by an MNA who was reluctant to vacate it. He said that he several times talked to the MNA to resolve the issue amicably, however the member was not ready to vacate the lodge.
In his observation, Deputy Chairman Senate Jan Muhammad Jamali, who was chairman at that time said that the matter should be solved in accordance with the rules. He said that it was right of the Senator and no stone would be left unturned to get back his right.
ANP's Senator Zahid Khan criticised Chaudhry Nisar Khan for politicising the issue even after the fact that an MNA illegally occupied the lodge of a Senator. He said that the matter was related to a single Senator rather it has affected the privilege of whole House. Those who also spoke on the issue and assured their full support to Hamayyun Khan Mandokhel include Jahangir Baddar, Maulana Abdul Ghafoor Haydri, Dr Saeeda and Tahir Hussain Mashadi.