Hundi system to be smashed: Rehman

ISLAMABAD - Advisor to the Prime Minister on Interior, Rehman Malik, on Tuesday said that Hawala system prevented inflow of foreign currency, which he said would be curbed at all costs. While delivering his short statement in the Upper House of the parliament over the situation emerged after arrest of Munaf Kalia, leading money changer executive, Malik said that illegal flight of foreign currency through Hawala system had depreciated Rupee. He said FIA had taken action against Khanani and Kalia's Chief Executive Officer after investigations having been carried out during the last three months. He informed that so far only one of the twenty computers confiscated could be decoded, which revealed an outflow of Rs 39 billion. He said another US $ 32 million had been seized from Lahore, which he said was being illegally transferred. He said that moneychangers were misusing rules regarding free flow of foreign currency. Malik further informed the House that FIA officials who had manhandled Munaf Kalia had been suspended. He said he had registered case against Kalia and Khanani with the help of expert legal aides to avoid possible violation of law. He said government would ensure rule of law and would allow no one to weaken the country's economy through illegal means of money making. Meanwhile, Senator Sadia Abbasi and Leader of the House in Senate, Senator Raza Rabbani engaged into a verbal brawl during Malik's speech, in which he was informing the House on recent development over money laundering issue. Senator Abbasi was of the view that the issue was sub judice, therefore, she opined, the same should not be discussed in the House. She said discussion over the matter could have bearings over court proceedings. However, Senators Raza Rabbani, Kamil Ali Agha, Prof Khurshid and Dr Khalid Ranjha differed with her and said that parliament could not discuss specific sub judice cases only. Senator Ranjha pointed out that Malik had neither spoken on any specific case, neither the case against Khanani and Kalia was sub judice. The issues of International Monetary Fund (IMF)'s possible bailout package and privatisation of Qadirpur Gas Field also dominated Tuesday's session of the Upper House. While addressing the House, Advisor to Prime Minister on Finance Shaukat Tarin said IMF had imposed no harsh conditions on loans, which govt was likely to borrow from the Fund within the next fortnight. He said the country needed IMF's endorsement, if not funds. He said the country had to swallow bitter pill to improve country's economy. Tarin further said that global financial recession, worldwide food and oil inflation and inactivity of economic managers of the past government had resulted in recent financial crunch. He informed that foreign exchange reserves had scaled down from $16.4 billion to $ 7 billion during the last one year. "We are facing difficulties in global fiscal transactions due to low credit rating of Pakistan", Tarin said, adding that foreign exchange reserves had hit the lowest mark. He said that government had set reasonable targets, which, he said, could be easily achieved through monetary discipline and determination on the part of government. He announced that government would obtain no more loans from the State Bank and fiscal deficit would be brought down to 4 per cent by the end of current fiscal year. He informed that fiscal deficit was brought down to Rs 138 billion from Rs 175 billion during the first four months of the ongoing financial year. He said dollar's value had gone down from Rs 87 to Rs 79 due to the steps taken by the government. He said that the central bank had left with foreign reserves amounting to US $ 3.5 billion only, therefore, the government was seeking IMF's assistance to ease the balance of payments. Federal Minister for Privatisation, Naveed Qamar also addressed the House. He said government was committed to privatisation, however, he said, all aspects regarding privatisation of national assets would be kept in eyes. He assured the House that workers' rights would be protected through agreements with foreign investors. Regarding Qadirpur Gas Field, Qamar informed that only 37 per cent of the Field would be privatised and bulk of shares of the field would still remain with Oil and Gas Development Corporation (OGDC). He said that the process of privatisation would be kept transparent and parliament would be informed of all the details. Opposition Senators, however, raised strong objections over privatisation of Qadirpur Gas Field, saying that the country was being deprived of profitable assets. Leader of the Opposition in Senate, Senator Kamil Ali Agha, said that the Field was generating billions of rupees annually. He also raised the issue of privatisation of National Bank, Dadoo Sugar Mills and Roosevelt Hotel, New York, which is owned by Pakistan International Airlines (PIA). Agha also urged the government to take serious steps regarding Baglihar Dam issue, saying that the same could change the country into a desert. He also condemned government's intention of imposition of tax on agriculture products. Senator Ishaq Dar also opposed privatisation of Qadirpur Gas Field. He said that due to the global financial recession, due price of the Field could not be received. He said that the Field had 70 per cent unused reserves and generated billions of rupees of revenue. Senator Prof Ibrahim agitated over the media reports regarding lavish and unethical ceremonies being held in Governor House Punjab. Senator Sadia Abbasi demanded of the government to provide details of financial deal with the IMF.

The writer is a member of staff and can be reached at khalidaziz100@gmail.com

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