ISLAMABAD: The government on Wednesday admitted in Senate that $4 billion had been transferred abroad during the previous government’s rule under dubious SROs issued by former president Pervez Musharraf and prime minister Shaukat Aziz, who had kept the matter secret even from the finance ministry and the State Bank of Pakistan.

Responding to a scathing attack from both sides of the aisle against the SBP governor’s decision to increase discount and interest rates allegedly under IMF dictates, leader of the house and minister for inter-provincial coordination, Mian Raza Rabbani, agreed with legislators that the SBP should have waited for the conclusion of the debate in the Senate before making the decision.

Earlier, lawmakers criticised the government for what they termed bypassing parliament in accepting IMF conditionalities.

A couple of lawmakers called for the formation of a bipartisan committee, comprising members of both houses of parliament and economists, to review the IMF package and prepare in a month a roadmap for economic revival.

Taking the floor on a point of order, Ishaq Dar of the PML-N said that the State Bank could not be allowed to become ‘a state within state’. He said the rate cut decision might prove to be disastrous.

Prof Khurshid Ahmed of the Jamaat Islami said that the Senate was being treated in a ‘contemptuous manner’, adding that it was in the midst of a debate on economy and could have come up with suggestions for a turnaround.

He said there was no precedent in the 60-year history of the IMF that a country had recovered after adopting its package.

Leader of the opposition Kamil Ali Agha criticised the government for what he said succumbing to IMF conditionalities even before the release of bailout funds, adding there were reports that the price of gas was being raised by 51 per cent for industry.

“While interest rates are being reduced the world over, Islamabad has raised them as first pre-condition for the approval of the IMF package.” Criticising the government for haste in obtaining the approval of the Cabinet Committee on Privatisation for the sale of a profit-making unit, the Qadirpur gas field, which “clearly reflected its scant respect of parliament”. Ilyas Bliour of the Awami National Party said the SBP decision would plunge the country further into recession.

Kamran Murtaza of the JUI-F and Zafar Iqbal of the PPP expressed fears that the move would deepen the crisis in Pakistan, which was already facing a huge trade deficit, adding that increased cost of production would hurt its exports.

Parigul Agha of the PML-Q criticised President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani for not visiting the earthquake affected areas of Balochistan because “they value their lives more”.

Prof Khurshid Ahmed called for holding the former president, prime minister, bureaucrats and politicians accountable for “misusing powers and looting the exchequer”.

Opposing the proposed privatisation of the Qadirpur gas field, he said it would be a ‘national crime’ if a “highly-profitable national asset” was handed over to the private sector.

He said that agriculture, industry and trade and businesses would be doomed if IMF conditionalities were accepted, adding that the government needed to play its role for uplifting the economy on the pattern of various European countries and the US.

Mr Ahmed asked “patriotic politicians and bureaucrats” to “bring back $23 billion from abroad” to help in the recovery of the national economy, restoring the confidence of Pakistani expatriates who would be encouraged to invest up to $200 billion.

Shahid Bugti of the Jamhoori Watan Party said he feared that the government “may continue to privatise national assets like the previous government”, citing the sale of Habib Bank for a paltry Rs22 billion, paid by the new owners in instalments out of profits earned from the same organisation. Tahir Mashhadi of the MQM urged the government to eliminate corruption and smuggling as the menace was eating up 60 per cent of the national wealth every year.

He said if the federal government found it difficult to run the Qadirpur gas field, it should hand it over to Sindh, its “rightful owner”. He also called for giving provinces “complete autonomy to build a better Pakistan”.

Abdur Rahim Mandokhel of the Pakhtoonkhwah Milli Awami Party termed the IMF an agent of international imperialists, and said he supported the suggestion for setting up a bipartisan committee to discuss options for economic recovery.

The house, which was presided over in parts by acting Chairman Jan Mohammad Jamali and PPP’s Dr. Safdar Abbasi, was adjourned till 2:30pm on Thursday when it was expected to be prorogued after winding up of the debate.