[:en]OUR CORRESPONDENT
ISLAMABAD: Chairman Pakistan Peoples Party, Bilawal Bhutto Zardari in his address to the National Assembly today said The real issue is the basic, ‘Roti, Kapra aur Makaan.
He said that the time has come yet again for the annual budget discussion, the purpose of which is to help the Pakistani people emerge from the economic quagmire.
Bilawal Bhutto Zardari said that representatives of the House have recently been elected in February, and they are aware of the actual plight of the people. The real problem is not our political narratives, statements, partisan politics or differences, nor is it the matter of who is in prison and who is not. The real issue is the basic, ‘Roti, Kapra aur Makaan’, as their only interest is the curbing of historic inflation, unemployment and poverty.
The people look at the government and the opposition with the hope that they will sit together and form consensus to prioritise the solutions to the crises faced.
Chairman Bilawal said that PM Shehbaz Sharif in his previous tenure as both the PM and Opposition Leader talked about a ‘Charter of Economy’. Without such a charter and consensus, we cannot address the long-term problems Pakistan is riddled with. The charter cannot be dictated by elsewhere or be an individual decision. The government would have to talk to benches on either of its sides. We should not only send our people and the business community this message, but also to the international community that the country has devised a ten or twenty-year long economic plan to be followed by those in the government, regardless of political affiliation. This would be the first step towards economic progress.
Chairman Bilawal said that when it was first decided by the PPP to support this government and PM Sharif, an agreement took place between the two parties. According to the agreement, the budget and related decisions including the PSDP should have been made with the consultation of the PPP. Unfortunately, this prerequisite was not fulfilled and the members of the PPP believe that they would have contributed positively to the process. A consultation and resultant consensus would have produced a better outcome. Chairman Bilawal said that his advice to the PM and Finance Minister would have been to invite the allies as well as the opposition to collaborate. In this manner, those in the opposition too would contribute instead of protesting alone. This would have been a political victory as well as an economic one.
The country’s economic situation is known to all, Chairman Bilawal said. It is hoped that the PM and his team are successful in helping the country emerge from the plethora of crises. Inflation is the most pressing concern in the country, and the indicators reveal that 10kg of wheat flour five years ago would cost less than Rs. 400. Today, it costs more than Rs. 1400. Similarly, in the last five years, electricity prices for up to 50 units have gone up by at least 277 percent and petrol prices by 195 percent. Milk, edible oil and lentils have increased by 113 percent, 21 percent and 353 percent respectively. Five years ago, a joint household income of Rs. 35000 would allow families to meet their nutritional, educational and medical needs. Today, if a family has to fulfil the same needs, their joint income should increase to Rs. 70000.
Chairman Bilawal complimented the government over the slight dip seen in inflation, and hoped that the policies conducive for this change would be continued. The 27 percent increase in the Benazir Income Support Programme is appreciated as it has become the gold standard to combat poverty not only in the country but internationally. Moreover, aspects such as financial transparency and women empowerment further enhance the vital role played by the initiative. In the recently held elections in India, the opposition in its manifesto presented an initiative similar to the BISP.
Chairman PPP said that while in the government, all were aware of the dangers lurking in the country and the achievements targeted under the ‘Bajwa Doctrine’. This was the basic reason which united us, and propelled us to defend the country, despite the political consequences. These achievements included the 18th Amendment, NFC Award and the conspiracy to halt the BISP. The BISP is the sole tool for the federal government to provide relief to the people, which we witnessed during the catastrophic floods. It is unfortunate that attempts were made to discontinue such an initiative of ours under a doctrine. The PPP will work towards attaining constitutional protection for the BISP so that no such conspiracies can be successful in the future. The poor masses and women of the country should be given the confidence that this initiative would run in the future as it is running now.
Chairman Bilawal said that the government has taken decisions regarding taxation. He said that he made attempts to highlight the positive aspects here too, but it was a difficult task. The PPP’s political philosophy revolves around progressive taxation. Every government claims that it wishes to increase the tax base and would burden the rich, not the poor. They claim that they will target mafias but provide relief to the common man. Unfortunately, we have been successful in seeing to it that all these claims are made true. If we wish to expand the tax base, we should engage in competitive taxation and not punitive taxation. Unfortunately, every budget stresses on indirect taxation and not direct taxation of the rich and the mighty companies. The burden of the indirect taxation is carried by the common man. In this budget too, 75 to 85 percent of our tax regime is indirect taxes. When this is the case, then suffice to say, we are not passing a poor and people-friendly budget. The common people will carry the most burden, whereas we should make decisions that redirect this burden towards the rich. In the province of Sindh, we are not only expanding our collection but also the base. We try to have competitive tax rates as compared to other provinces and simultaneously, we do not use the NAB, FIA or Anti-Corruption to threaten the business community. We try coaxing them into the tax net, and we have seen this strategy be successful. The previous government attempted to make full use of NAB, FIA and similar entities to meet its targets. They were unsuccessful, and this government will be too if it adopts the same methodology. We have to introduce policies alongside our people, that not only increase the tax net but also our revenue.
Chairman Bilawal said that when the sales tax on services was devolved, each province formed its own revenue board. The performance of these provinces, including the Khyber Pakhtunkhwa and Balochistan has been better than the federal institution, FBR. The performance of those claiming to be doing their best is not better than that of the Balochistan Board of Revenue. The federal government still collects sales tax on goods. If it wishes not to devolve it, it should at least give the provinces the responsibility to collect the tax for the federal government. We can set a target collaboratively; the amount would go directly to the government. If the provinces miss the target, then they would compensate for it from their own budget. However, if the collection is in surplus, then the additional amount can be kept by the provinces. This is a win-win solution and can be implemented for a year or two as an experiment at least.
Chairman Bilawal said that the PPP contested the elections on the ‘Awami Muashi Muahida’. The PPP made big promises, but also included the big initiatives that would need to be taken to achieve the feats desired. It was a welcome step when the PM included some of our points in his first speech. However, we are presenting the first budget and the ideas with no implementation on the ideas proposed. Our manifesto included the devolution of the numerous ministries still operating under the federation, the PM mentioned this in his speech but there has been no progress. The PPP demands that these promises are fulfilled before we move to further devolution. The Pakistani state gives Rs. 1500 billion worth of indirect subsidies to the fertiliser companies. However, there has been no implementation on redirecting these subsidies to the poor farmers instead. We appeal to the PM to take a step towards implementing this, and the PPP will stand with the government to combat the big lobbies. This will bring an economic revolution.
Chairman PPP said that the agricultural sector was the only bright spot when it came to the economy last year. It was the only sector with apparent growth. This is the sort of growth that brings with it employment and progress, as well as a crucial increase in exports. The highest increase in exports and employment took place during PPP’s government from 2008 to 2013. We achieved it through investing in our agriculture, and our farmers in turn contributed and worked hard to propel the country forward. When we assumed office in 2008, Pakistan was importing wheat and rice. Within a year, President Zardari turned Pakistan into an exporter of wheat and rice. This sector generates the most employment as well. The money that the Pakistan government was giving to the farmers abroad, was given to the farmers of the country instead. Today too, our advice to the government would be to invest in the agricultural sector. Our farmers need our support. When we make decisions, we should keep in mind who we are competing with. A neighbouring country of ours gives billions’ worth of support to its farmers on a federal and a provincial level both. If we give even half of that support to our farmers, not only can we outperform our neighbours but also address the food insecurity crisis worldwide. Unfortunately, we have taken the bureaucratic approach to burden this sector further when there is growth. In our opinion, we should devise ways to support them instead.
Bilawal Bhutto Zardari said that a long-standing concern for the PPP in its manifesto has been climate change. As a result of this, the people of the country have to bear losses. It is imperative that we realise that Pakistan is considered the third pole. Pakistan is home to the largest reserves of glaciers after the North and South poles. Our contributions to the global carbon footprint are less than one percent, but we are always one of the top ten countries bearing the losses. Before we expect the rest of the world to support us, we should ourselves decide whether Pakistan is willing to combat climate change and spend its own resources. Be it the ADP or the PSDP, we have to make projects by keeping climate change as the priority so that Pakistan can adapt to the upcoming climate crises. Chairman Bilawal thanked the federal government for keeping money aside for the jointly funded projects after the catastrophic floods in Sindh and Balochistan.
Chairman Bilawal said that the country’s budgeting process would need to move towards adaptation. When we show to the world that we ourselves are serious, only then can we expect the world to support us. It is the biggest challenge for the current and coming generations. The coming generations will hold us accountable for failing to act.
Chairman PPP said that the energy crisis is also a pressing concern. The PPP in its manifesto incorporated the decision to move towards solar and renewable energy. The PM too included it in his speech and made a solar energy park as the CM Punjab as he takes great interest in this area. In this sector too, there are strong lobbies present in the country that do not allow us to expand. Instead of hydrocarbons and imported energy, we should focus on domestic energy. How are we to face the public in our constituencies with 18 hours of load-shedding when mercury reaches 50 degrees Celsius, Chairman Bilawal asked. We should sit and collectively decide to install free solar panels for the poor and give them on subsidised rates to those that can afford it. If the federal government and provinces collaboratively work to bring forward this project, then it can aid greatly in addressing the energy problems. If we make the decision to support renewable energies, we cannot only combat climate change but provide relief to the people. The same lobbies have been making efforts to show our domestic sources of energy in a bad light and compel us to look towards international sources. Our own federal bureaucrats initiated a disinformation campaign to malign our coal. Now that we have initiated the successful Thar Coal Project, it has been discovered that it is one of the most efficient and affordable means of energy. If the government decides to give one year worth of time to those using imported coal to shift to our own coal, not only would it decrease our import bill but also benefit the economy. There is an entire lobby that can be combatted if the PM decides to take action and we will support him. We would want the PM to be assertive especially when it comes to NEPRA and similar institutions to force them to use domestic sources. Chairman Bilawal appreciated the government’s step to include in the budget the amount for the gasification into supply energy to those areas that produce gas.
Chairman Bilawal expressed his gratitude to the Finance Minister for praising Sindh government’s public-private partnership initiatives that are a success story. It is a success that was born out of necessity. To overcompensate for the reduced share we received as a province, we followed the public-private partnership model included in the 1993 manifesto of the PPP by Shaheed Mohtarma Benazir Bhutto. We have initiated construction, educational and medical projects through public-private partnership. However, the rapid progress hit a wall in 2018. This was because we realised that NAB and the Pakistani economy cannot coexist. The manner in which NAB was used for political gains caused this. The bureaucrat puts his pen down out of the fear of NAB. Businessmen too choose to run. It is in our manifesto and that of the other parties to abolish NAB. The biggest supporters of NAB may too support this step today. We have not made successful efforts to decide to abolish the institution responsible for political engineering, maligning the politicians and ruining the economy and democracy of the country. We do not need to send our opponents to prison to further our politics. If the step to discontinue NAB is finally taken, then it will benefit the country, its economy and democracy. If this is not done so, then at least public-private partnership projects should be exempt as was done for the SIFC. We have to address the fears of the business community and the hesitance of the bureaucrats. Another sector that looks for similar support is the IT sector, that is a pivotal concern especially for the young population. Every modern device is taxed, and it becomes out of reach for the people. The infrastructure of today is not motorways or highways alone, it is the fastest internet broadband speed from the mountains of Gilgit to the port of Gwadar. This can be achieved through public-private partnership.
Chairman Bilawal Bhutto Zardari said that consensus and collaboration can yield far greater results than individual decisions. It would be the PPP’s demand for the government to strengthen its decisions through consultation. The Pakistan long-standing plight has been excluding political input from the budget. The desired relief cannot be given to the people until those that are aware of the ground realities are involved in the process. Unless and until there is political input, the budget will be ‘by the babus, for the babus and of the babus’. We have to put an end to this tradition. The stunting rate for children under five years of age is 40 percent. It is not possible that a politician decides to impose 18 percent tax on milk, it must be the suggestion of a ‘babu’. It also must be the advice of a ‘babu’ to impose taxes on stationary in a country where 26 million children are out of school. 18 percent sales tax is now to be imposed on health devices, such as stents which we do for free at the NICVD. We demand for such decisions to be reversed, Bilawal Bhutto Zardari stated.[:]
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