Senators furious over State Bank move
Written by Writer on Thursday, November 13th, 2008
Senators furious over State Bank move
By KHALID AZIZ
ISLAMABAD - Senators both from treasury and Opposition benches Wednesday strongly protested against the increase in the discount rate by State Bank of Pakistan and said the move would bring business activities in the country to a halt.
While debating over the prevailing economic situation of the country in the Upper House, Senators on both sides opposed the two per cent increase in discount rate and said the central bank should have waited for the conclusion of Senate debate.
Leader of the House in the Senate Senator Raza Rabbani, too, admitted that the State Bank had announced the interim monitory policy in a hurry, which was wrong.
Senator Ilyas Bilour said that the discount rate was being cut through out the world to facilitate traders and business community in the ongoing global economic meltdown. He said State Bank’s decision would destroy the country’s industry and would further increase unemployment. He challenged the government’s claims of inflation above 25 per cent, saying that decrease in prices of various commodities in international market had brought down inflation to only 18 per cent and the central bank had no reason to increase the discount rate.
Leader of the Opposition in Senate Senator Kamil Ali Agha said that increase in discount rate would result in increased cost of production, which would increase inflation enormously. He said the decision was a result of the government’s deal with the International Monitory Fund (IMF). He also expressed anger over news regarding government’s intentions to increase tariff on natural gas by 51 per cent.
While replying to points of order raised in the House after the central bank’s announcement regarding increase in discount rate, Rabbani alleged that former prime minister Shaukat Aziz had facilitated flight of US $ 4 billion from Pakistan through Statutory Regulatory Orders (SROs). He said the SROs were kept secret even from the Ministry of Finance and State Bank in a bid to benefit his (Shaukat Aziz) dearer and nearer ones.
He said that PPP always opposed IMF but policies of former prime minister compelled the present government to go back to the Fund. He said stories of economic crimes of the Musharraf and Aziz were coming to the surface gradually.
He further said that PPP believed in supremacy of Parliament, however, the previous government never discussed any issue in the Parliament. He said that during the previous government, all the policies were formulated in President House and even the then cabinet was not taken on board.
The issue of privatisation of Qadirpur Gas Field and IMF’s bailout package also dominated the Wednesday session. Members of both the benches strongly opposed the government’s move to privatise the second largest gas field of the country.
Dr Khalid Soomro said that JUI-F would oppose privatisation of profitable assets on all forums and would come on roads if government forcefully privatised Qadirpur Gas Field. He said that Shaheed Benazir Bhutto had termed the Field a gift for the people of Sindh province while inaugurating it. He also stressed on provincial autonomy.
Other senators including Col (R) Tahir Hussain Mashhadi, Abdul Khaliq Pirzada and Liaqat Bangulzai also urged the government not to sell profitable assets.
Senator Bibi Yasmin Shah drew attention of the House to the plight of pilgrims who were waiting for days to obtain their passports.
Senator Begum Kalsoom Perveen said that government quarters in the federal capital were being used for commercial activities.
Minister for Housing Rehmatullah Kakar admitted that clinics, restaurants and beauty parlours had been opened up in government quarters and said strict action was being carried out against the persons who had been allotted such houses.
Senator SM Zafar praised President Zardari for discouraging horse-trading, however, criticised him for holding party office. He also condemned government’s bid to topple Local Government System, which he said was vital for local uplift.
Nawaiwaqt Group of News Papers
