Economic crisis biggest challenge: Tax thieves have reached assemblies also, says Khawaja Asif

ISLAMABAD: Defence Minister Khawaja Muhammad Asif said on Wednesday that Pakistan was a nuclear state having an impregnable defence system, but economic crisis was the biggest challenge haunting the nation currently.

Taking part in discussion on the federal budget, he said, in fact, there was no external threat to the country, but the economic challenges were haunting the country continuously. He regretted that people affiliated with various industries involved in evasion of billions of rupees were sitting in assemblies. He read out an IPSOS survey highlighting which industries evade taxes in Pakistan. Asif said the real estate sector alone was responsible for Rs500 billion in evaded taxes through under-invoicing and land evaluation scams. He added that there were people in the real estate sector whose name cannot be uttered on TV. He then said that Rs240 billion worth of tax was being evaded in the tobacco industry, with two companies paying 99pc of the taxes. He added that people affiliated with the tobacco industry had made it to the parliament as well.

Kh Asif said Rs50 billion and Rs56 billion in taxes were being stolen in the automobile industry and auto lubricant industry. He added that Rs45 billion were being stolen in the garb of tea imports. He added that there was tax theft worth Rs2,880 in the retail sector alone. “We will have to find out a permanent solution to this,” he added. “All of this is happening in a country that is neck deep in debt,” he said. “People are not even sparing university funds. We have tried to dismantle this elite capture, but to very little success. I hope there is stable government in this country that can take them on.” He called for getting rid of sick and loss-making organisations, and curbing tax evasion and smuggling of various goods. The minister said PM Shehbaz Sharif and his government were taking all possible measures to provide relief to the common man, and had remained successful to some extent.

He said now the time had come that the government should stop extending financial support to the sick organisations and get rid of them. “Giving life-support and keep-pumping financial resources to the deadwoods was a crime against the state, being committed for long,” he opined. He acknowledged that Finance Minister Ishaq Dar tried his best to make possible the impossible within the limited resources, but there was dire need to strengthen the national economy with corrective measures. Kh Asif said the government would have to get rid of the sick units, citing examples of two such organisations which were under debt of over Rs1,000 billion, but they were being carried forward for reasons beyond understanding. Their early disposal would be better for the country, he added.

He said the chief executive officers (CEOs) and the chief operational officers (COOs) of those units, who were supposed to help end poverty in the country, were getting Rs300,000-350,000 monthly salaries and holding their positions intact on stay orders of courts. He suggested a more effective mechanism to prevent the sale of smuggled items in open markets of the country as it would help generate more revenue and boost the national economy. The minister said around Rs2000 billion tax-related cases were pending with the courts that needed early disposal. “The country has the solution to all economic problems, but needs a strong will,” he said. He said the government had to pay a huge interest amount against the loans which was higher than the federal receipts. The minister pointed that the country had the required resources to generate funds and improve the national economy but lacked the will for which all institutions including politicians were responsible. “The country has the solution to all economic problems, but a strong will was needed,” he added.

During his speech, the defence minister also came down harsh on the previous government that ruined the national economy and institutions due to its failed policy. He said what happened on May 9 was equal to challenging the writ of the state, as it never happened in the country’s history that a party, after being ousted from the government in a legal and constitutional way, resorted to attacking the military installations and damaging the martyr memorials. He informed the house that around 32,000 persons had so far been identified for their alleged involvement in vandalism of the military installations and memorials of martyrs.

Other members expressed their appreciation for the government’s presentation of a balanced budget despite the current economic challenges, but Rana Aslam Noon and Syed Mobeen Ahmed, both from the PTI, rejected it. Rana Aslam questioned as to how the Government would be able to meet all the budgetary targets saying that more than half of outlay would go to debt servicing. However, he strongly condemned the May 9 incident and criticised the PTI leadership for promoting a culture of abuse in the country. Syed Mobeen Ahmed criticised the budget, pointing out that expenditures exceeded the government’s revenue. Agha Hassan Baloch, during the budget debate, condemned the May 9 incident and emphasised his party’s opposition to violence.

He also suggested improving trade ties with Iran and emphasised the need for the federal government to promote agriculture in Balochistan province.

Nawabzada Iftikhar Ahmed Khan criticised the PTI government, holding them responsible for the country’s economic downturn and alleged that they had undermined the country’s diplomacy. While appreciating increase in government employees’ salaries, he urged the government to raise it further by up to 50 per cent.