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FATF ‘blacklists’ Pakistan
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Visits
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Visits
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May 18, 2012
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Senate Standing Committee on Finance has expressed great concern over the deteriorating economic state of affairs of the country and criticizing the concerned authorities said thatdue to incompetency of economic managers Pakistan has been black listed by FATF. The foreignloans has reached 12000 billion and there is no chances of fulfilling the budget target ofthe current fiscal year. The budget deficit has gone above 1500 billion, and it is anybody'sguess how it would be overcome.
During the four year tenure of this government the growth rate of country's economy has dangerously declined and no one can deny the fact that during this period departments likeSteel Mills and Railways are nearly finished after suffering severe economic problems. PIAdoes not have required planes and OGDC projects are lying pending. Due to deteriorating lawand order situation the foreign investment is nill. For several years no major developmentproject has fail to take off or be completed. The Rupee is depreciating day by day. Thecommon man is facing hardship to eat twice a day. The ratio of people living below the povertyline is increasing day by day.Due to corruption and mismanagement the system of monetaryagencies has not been placed on its right path. Every economist in the world know that ifeconomy is not strengthened than the state cant strengthen either. No one could have everthought that a super power like Russia could ever dismember but when it started facingeconomic downfall than it could not maintain its existence. Revolutions take place when theeconomic state of the country starts facing downward trend. These days Pakistan is also asimilar trend and the economic managers do not seem to have any agenda to turn around theeconomic situation of the country.
In the last four years Pakistan faced the worst economic situation in its history during the era of 70 and 80's Pakistan's growth rate was greater than that of India but now the situation is the other way around. In the last 15 years India has made greater strives in economic development. By 2011 India had become the 10th world's economic power. According to London Centre for Economics and Business Research by 2020India's economy would surpass Germany, France, Italy and UK and it would become the 5theconomic power of the world. Pakistan has lost its status of developed country. In a report of Asian Development Bank despite a global recession 245 people between 2005 and 2010 have comeout of extreme poverty list while during this period poverty has increased in Pakistan. Dueto tax evasion, embezzlement, misadministration, corruption and power crisis the nationalexchequer is facing loss of 3700 billion rupees every years (10 billion rupees daily).
While the so called on terror the national economy has suffered loss of 80 billion dollars.Transparency International advisor, AdilGillani says that the real impact of corruption in the country’seconomy is far more than what is generally estimated or what is formally uncovered. Hebelieves that Pakistan does not need even a single penny from the outside world if it effectively checks the menace of corruption and ensures good governance.
It is generally believed that the four years of the present regime under Gilani had been theworst in terms of corruption and bad governance in the country’s history. Past records ofcorruption were broken and Pakistan started rising in the ranks of the most corrupt nationsof the world.
There has been no check on corruption as the anti-corruption institutions like the NationalAccountability Bureau and Federal Investigation Agency instead of checking corruption havebeen siding with the corrupt.
These institutions have been helping the corrupt to get off the hook by distorting andmutilating the evidence in favour of the influential accused.The TIP adviser added that India’s tax-GDP ratio is 18%, and at that rate, Pakistan’s tax evasion/corruption in FBR is 9% of $175 billion, which is US$15.5 billion per year, i.e. Rs1,400 billion per year.
It is worth mentioning here that it is not only the Transparency International but there havebeendifferent international bodies including the World Bank and world capitals, which have been showing their concern over rising trend of corruption in Pakistan under the Gilani’sregime. It was mounting corruption and extremely bad governance, which even dithered the outside world to offer cash to Pakistan during 2010 and 2011 floods, which devastated different parts of Pakistan and affected millions of people.
At home the corruption became a fashion in such a shameless manner that even the cabinet ministers started openly pointing fingers at each other and even at the highest levels including the prime minister. Some even approached the Supreme Court but despite all this, corruption remained the hallmark of the present regime, which instead of curbing it started defending it in the name of democracy.
Finance Minister has admitted to 500 billion rupees corruption in FBR, Auditor General had identified 315 billion rupees corruption in 2010. While PAC had recovered 115 billion rupees in 30 months till 2012. Corruption had started during tenure of Pervez Musharraf but it gained momentum during the tenure of this government, which is damaging the process of economic development.
His poor governance resulted in the loss of billion of rupees to national treasury due to corruption and mismanagement in some public sector organizations such as Pakistan Steel Mills, Railways, PIA and KESC. Moreover, he had introduced Tax amnesty scheme to legalize the black money of corrupt people in return for 10% money to national treasury. The notorious National Reconciliation Order (NRO) introduced by Pervaiz Musharraf also brought bad name to the country, which had granted immunity to 240 politicians and bureaucrats for their corruption.
Such steps proved disastrous to national interests and gave rise to many corrupt practices. Recently, the Transparency International Pakistan has uncovered the corruption of 8500 billion rupees during the current tenure of the present PPP government, which includes corruption in public sector organizations, tax evasion, profligacy of the ruling elite, giving contracts to their lackeys and relatives in violation of the rules.
However the rulers are oblivious to this fact, they say that unprecedented development has taken place during their era. They say that inflation is coming down but the reality is much different.
Last year, a wave of protests against corruption was observed in various countries including Brazil, India, China, Russia, Israel, and Cambodia. Slovakia is also going through the same resistance against corruption nowadays. Unfortunately, our rulers have always patronized corruption;
It would not be an exaggeration to say that corruption acts like a disease to paralyze societies; however, strong nations fight back this menace to get rid of it and from its grave consequences.
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