KARACHI:Senior economist Dr Kaiser Bengali, a former Advisor to Sindh and Balochistan Chief Ministers said that IMF has one-point agenda in Pakistan to privatize including remaining commercial and industrial units as well as natural resources like coal and gas.
There would be a large scale unemployment in the coming days as a result of future privatization, Dr. Bengali said while delivering a keynote speech at a consultation meeting on present economic situation and impact on common people, jointly organized by Pakistan Institute of Labour Education and Research (PILER) and Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST) at Arts Council of Pakistan, Karachi. A large number of trade unions, human rights and civil society activists attended the consultation.
“I fear that after selling all industrial and commercial units, this government would also sell our natural resources like coal and gas,” Dr. Bengali said. He pointed out that technocrats in the past have created problems for Pakistan’s economy and once again technocrats are being imposed on us,” he said adding that foreign policy and defence were already in the hands of technocrats but now economy is also handed over to the technocrats as well. It is a hostile takeover by the IMF, he remarked.
Dr. Bengali said that many public sector entities including utilities like PTCL and Karachi Electric Supply Corporation were privatized in the past under the instructions of International Monetary Fund (IMF).
He recalled that for a consecutive period of 16 years, State Bank of Pakistan (SBP) remained under the control of IMF. Started from Governor of SBP Dr. Mohammad Yaqoob in 1993, the SBP remained under control of IMF people like Dr. Ishrat Hussain and Dr. Shamshad Akhtar. Now again a serving officer of IMF is appointed as SBP Governor.
He said Dr. Hafeez Shaikh is another example of IMF interference in Pakistan’s economy, who was taking instruction directly from IMF. Even Dr. Hafeez Shaikh was not attending telephone call from the Prime Minister in 2009. He (Hafeez Shaikh) was reporting to either IMF or Zardari only. Many times the former Chief Minister Qaim Ali Shah called him in my presence, but he did not attended his phones, said Dr. Bengali who was Advisor to Sindh Chief Minister for Planning and Development.
He said Pakistan’s economy is already vulnerable and any increase in taxes would further deteriorate it. He said the industrial production is declining and many industries are closing down due to economic policies. Trade deficit is higher because of increased imports, he said adding that Pakistan’s economy has become imported economy.
Dr. Bengali said that exchange rate would further devalue in near future. A dollar would reach Rs. 200 by the end of current year (2019) and next year it would reach at Rs. 250 a dollar, he said adding that inflation rate would further increase and would touch 20 percent by current calendar year. He suggested mass mobilization of workers to protest against IMF-led economic policies.
Speaking on the occasion, Karamat Ali, Executive Director of Pakistan Institute of Labour Education and Research (PILER) said first IMF package was sought by the caretaker government in 1988. It was an unconstitutional government in which there was no Prime Minister because for a government comprises of a Prime Minister and a Cabinet. The democratically elected government led by former Prime Minister Benazir Bhutto inherited that package in 1988, which led privatization, deregulation and devaluation.
Any IMF packages for structural adjustment has never achieved any target, he said adding that. “We had reviewed the IMF package after eight years, which revealed that debt servicing, defence budget were more than the revenue collected, so we had to take more loans,” he added.
Karamat Ali said that more than 73 percent population in Pakistan is living below poverty line. Real income of people has declined by 50 percent since 1988 due to IMF-led neo-liberal economic policies. According to official data around 73 percent workforce is working in the informal sector and 85 percent workers are not receiving minimum wages, he added.
Ali said textile sector industries are in danger as its exports are declining. Pakistan has acquired Generalised Scheme of Preferences (GSP) Plus since 2014, which allows Pakistani exports in European Union markets without any duty, but Pakistan were unable to take benefit from that scheme.
The major demand of IMF was devaluation of Pakistani currency and the government has done it even much before going to IMF for a bailout package and it is feared that rupee may further lose value and touch Rs. 150 per US Dollar in the coming days. The forthcoming IMF deal is being signed without taking the Parliament into confidence.
He said common people’s problems are not given importance by the government. He recommended to launch land reforms to provide land to landless peasants. He also suggested to introduce electoral reforms in Pakistan by providing representation to the working people.
Ms. Zehra Khan said contract system in employment is introduced in Pakistan. The industries hire retired military officers to suppress the trade unions. Informalization is increasing in Pakistan.
Dr. Riaz Shaikh, head of Social Science at SZABIST said that Pakistan economy is declining due to IMF and World Bank policies.
Azhar Jameel, Imran Sherwani, Shahnaz Wazirali, Jannat Gul, Nasir Mansoor, Zulfiqar Shah, Khadim Soomro, and others also spoke on the occasion.
Newsdesk