When the PTI was in opposition, it uses to criticise the PPP and PML-N government for giving concessions to the elite of Pakistan. PTI was used to criticise the cartels, mafias and elite for taking undue advantages and favours from the previous governments. Imran Khan always presents himself as someone not part of the elite. Even though, he enjoys the living standard of super-rich elite.
There was hope that PTI government will work to break the cartels and mafias who control the economy. But PTI government in last one year in power is working for the interests of the rich and elite. PTI government is discussing to write off a minimum Rs208 billion in favour of a handful of industrialists. PTI has decided to write off billions of rupees because it failed to collect this amount. Even previous governments of PPP and PML-N failed to collect this amount from influential industrialists. Now PTI government decided to give up and to write off Rs208 billion. The government failed to recover dues on account of gas infrastructure development cess (GIDC).
This was revealed in the sub-committee meeting of the Public Accounts Committee (PAC). The amount that the PTI government is going to waive in favour of the industrialists, mainly from Karachi, is close to the total loans written off from 1971 to 2009. The government is thinking to promulgate the presidential ordinance in this regard.
Commercial banks wrote off Rs256 billion between 1971 and 2009, according to the details submitted in the Supreme Court a few years ago. Depending on the settlement date, the amount may exceed Rs208 billion.
It is seen as an injustice to the people, mainly poor farmers, who have already paid the amount but the industrialists have refused to deposit it in the national exchequer and have moved courts. It will also put Punjab-based industrialists at a disadvantage who have already settled some of their liabilities.
Total GIDC dues stand at Rs416.3 billion as of the end of December 2018 and according to a proposed ordinance, half of the amount will be written off in favour of just four sectors – fertiliser, textile, power generation and compressed natural gas (CNG).
The cess concession was going to benefit only a few tycoons in Sindh. These people involved in the business of fertiliser, captive power and textile have huge liabilities. Total dues against the textile sector were Rs42.5 billion, of which about Rs21.2 billion would be waived, according to the Petroleum Division’s statistics.
The liabilities against captive power plants stood at Rs91.4 billion and half of it would be waived, according to the Petroleum Division information. The CNG sector owed Rs80.1 billion, of which Rs40 billion would be written off, subject to promulgation of the presidential ordinance. While looking at the liabilities of the two public gas utilities, the Sindh-based industrialists will be the main beneficiaries. SSGC’s total arrears stood at Rs178 billion even after payment of Rs56 billion, according to the Petroleum Division data.
SNGPL’s total arrears amounted to Rs136 billion after deducting Rs81.8 billion payments. K-Electric and power generation companies have also not settled Rs57.4-billion dues, according to the Petroleum Division.
The Petroleum Division has submitted details of the outstanding cess in the National Assembly in response to a question raised by Pakistan Muslim League-Nawaz’s (PML-N) Member of National Assembly Ali Pervaiz. The cumulative GIDC since 2012 stood at Rs701.5 billion till the end of December 2018, of which only Rs285 billion had been paid.
In January this year, the PTI government had decided to bail out big defaulters by waiving 50% of their outstanding dues. It has now decided to promulgate a presidential ordinance to amend the GIDC law aimed at waiving half of the outstanding cess. Only half a dozen fertiliser companies will be given a benefit of Rs69 billion, which they have recovered from the poor farmers but have refused to deposit in the national kitty. The total outstanding amount against them was Rs138 billion as of the end of December. Fertiliser firms are still recovering the GIDC from the farmers.
The Pakistan Peoples Party (PPP) government had imposed the GIDC, which the industrialists challenged in courts. Subsequently, the PML-N government amended the law in 2015 but still the industries refused to discharge their legal obligations.
It seems that the PPP, PML-N and PTI governments lacked the political will to recover the huge sum from the powerful and influential industrialists. It was and still the government of the rich –for the rich. Nothing has changed in last one year in Naya Pakistan under PTI government.
Your email address will not be published. Required fields are marked *