MQM LEADER MR. ALTAF HUSSAIN'S COMMENTS ON FEDERAL BUDGET, 1998
London - 13 June 1998
Mr. Hussain while commenting on the Federal
Budget said that in this time and moment when the entire nation
is passing through a time of test and endurance it was a
difficult task for the Government to present a budget for the
year 98-99. Although it was an achievement of the Government,
however, Mr. Hussain emphasised that at this crucial moment the
budget should have been a complete reflection of a sincere
attempt towards the stability of the country and it should have a
manifest coherence with the need of the time. He firmly asserted
that the nation and the country cannot afford to repeat any past
mistakes.
Mr. Hussain while commenting on the specific measures said that
as a result of the recent fiscal measures four different exchange
rates have become operational in the country and the exporters
will be allowed the lowest of these rates. It was therefore, he
said, doubtful if the increased target of exports at 15% would be
achievable. In fact, Mr. Hussain emphasised, that some definite
export incentives should have been given for increase in the
export surpluses and/or export of the value added goods.
Mr. Hussain, while commenting on the imposition of
"emergency" in the country said that the credibility of
the Government had been badly eroded as a result of the freezing
of Foreign Exchange Accounts. He added that it would serve as a
great disincentive for promotion of national savings which was
already at a low rate.
Mr. Hussain criticised the absolute lack of any measures for
promotion of investment in large and medium scale industries. He
further added that improvement in large scale manufacturing at 7%
over the previous year is hardly reflected on the ground, as
there was a negative growth rate last year.
Mr. Hussain further expressed his dissatisfaction over the
measures envisaged for the revenue generation. He said that the
emphasis on increased revenue generation was once again on the
urban sector. He added that at the moment when the entire nation
was passing through a crucial time it was expected that new
sources of revenues would be explored and introduced such as
income tax on agriculture sector. He emphasised that in view of
the adverse affects of the sanctions, agriculture tax had become
a dire need of time. But, surprisingly this sector had been once
again let off from making due contribution to the national
revenues. On the contrary, fresh benefits had been allowed to
that sector by way of increased loan to the tune of rupees 10
billion. Moreover, he added that big zamindars (feudal) would
have the facility to get cheaper tractors and agriculture
machinery.
Mr. Hussain further added that there was hardly any justification
to reduce duties on luxury items, surprisingly on luxury cars.
Reducing import duty on such items would promote their
consumption within the country through increased imports and
thereby further damage our domestic industry.