• Asif points out tax evasion of Rs4,000bn by ‘mafias’, takes swipes at judiciary
• Latif demands establishment apologise for Nawaz’s ouster

ISLAMABAD: Taking part in the general debate on the federal budget in the National Assembly, lawmakers consumed most of their time on Wednesday in delivering lengthy political speeches, targeting PTI chief Imran Khan and the judiciary, while a key minister pointed out over Rs4,000 billion of tax evasion by various ‘mafias’, terming it a ‘dacoity’ on the national exchequer.

PML-N stalwart and Defence Minister Khawaja Asif in his nearly 50-minute speech not only held the judges responsible for the prevailing political crisis but also blamed the judiciary for the present poor economic conditions, alleging that the judges were ‘facilitating tax evaders’ by granting them stay in various cases.

Besides blaming the judges, the minister also expressed his concern over the inability of the successive governments in taking action against these influential tax evaders who, according to him, had even reached the parliament.

He said no government made any ‘major attempt’ to make ‘fundamental changes’ to the system. He also called for the privatisation of ‘sick organisations’ that had become a burden on the economy. “Thousands of billions of rupees are being spent on keeping those organisations alive whose survival is impossible. Pumping the money to such entities is a crime against the state,” he declared.

Mr Asif regretted they were paying an interest amount that was more than their income. Without naming, he said, there were two departments whose debt was over Rs1,000bn but they were being carried forward. He was apparently referring to the Pakistan Railways and Pakistan International Airlines (PIA), as he said he did not want to name the departments for he did not want to annoy his colleague heading both departments.

The minister also expressed his surprise over the huge salary packages of the members of the boards of various government institutions and judges. He said the chief executive officer and the chief operating officer of the organisation set up for poverty alleviation were receiving Rs3m to Rs3.5m salaries after obtaining stay orders from courts to continue to hold their positions. “What a joke that those responsible for alleviating poverty are busy in making themselves billionaires,” he remarked.

He alleged that vice chancellors of some varsities became billionaires through fund embezzlement. “Dacoits were teaching” the country’s youth, he said, adding that the VCs did not retire but rather sought stay orders from courts.

Tax evaders in parliament

Quoting a study by Ipsos, a multinational research firm, the defence minister disclosed that over Rs4,000bn tax evasion was taking place in Pakistan in various sectors.

He said Rs500bn tax was being evaded through under-invoicing in the real estate sector. He claimed no one in the parliament or media could take the name of the real estate tycoons such as Malik Riaz, the owner of Bahria Town.

Similarly, Rs240bn tax evasion was taking place in the tobacco sector, he said, adding that two foreign tobacco companies were paying 99pc tax from the sector whereas the rest of the companies that constituted 40pc of the industry paid only 1pc tax. “These people have reached the parliament. Those who do not pay taxes and are involved in tax dacoity are sitting in parliament,” he said.

Also, Rs50bn tax was being evaded in automobile and tyre sectors, Rs56bn in auto lubricant, Rs65bn in pharma sector, Rs45bn in tea import, Rs30bn in the steel sector and Rs222 billion in the yarn sector. The biggest evasion of Rs2,880bn was taking place in general sales tax in the retail market, he added.

After pointing out that Pakistan has the required resources to generate revenue but lacks the will for which he blamed all institutions, including politicians, the minister turned his guns towards the judiciary, stating that nearly Rs2,000bn tax-related cases of the FBR were pending.

“What is this judiciary doing with the country?” he remarked.

He said the government had been unable to privatise sick state-owned enterprises (SOEs) due to court’s interventions. He said the SC reversed the privatisation of the Pakistan Steel Mills and since then they had already paid billions of rupees to the “dead organisation”. The minister admitted that his government made an attempt to dismantle these mafias, but could not do so.

3200 ‘rioters’ identified

Condemning the PTI over the May 9 incidents, he informed the house that over 3,200 persons had so far been identified for their alleged involvement in vandalism of the military installations and memorials of the martyrs.

Earlier, federal minister Javed Latif demanded action against the facilitators and planners responsible for the May 9 incidents, alleging that the same elements who were involved in the ouster of ex-premier Nawaz Sharif in 2017 were behind this tragedy. He asked the “serving and retired” officials in the “institutions” who were responsible for ousting Mr Sharif from power and imposing Imran Khan on the nation to apologise to Mr Sharif and bring him back to the country. He said the serving judges had now admitted that great excess was committed with Mr Sharif whereas the ex-servicemen had also confessed that they had played a role in ousting Mr Sharif and installing Mr Khan.

Those serving or retired servicemen who had committed excesses with Mr Sharif should be lined up along a red carpet upon the arrival of Mr Sharif and they should seek an apology, he demanded.

Federal Minister for Science and Technology Agha Hassan Baloch of the Balochistan National Party-Mengal (BNP-M) meanwhile clarified that his party was not in favour of the resolution adopted by the house seeking speedy prosecution of the May 9 arsonists through the military courts. He said he was making this clarification as the BNP-M members were not present in the assembly when the resolution was adopted.

The National Assembly will meet again on Thursday (today) at 11am.

Published in Dawn, June 15th, 2023