Karachi: Economist Dr. Kaiser Bengali has said that Pakistan in reality comprised of ‘two Pakistans’ – one belonging to a prosperous elite and the other to the poor – and argued that only organised public pressure on the ruling class could bring about meaningful improvement in the country’s economic conditions.
He was speaking at a lecture titled ‘The Economy After the Budget – Is There Hope for Improvement?’ organised by Jamaat-i-Islami District Central. Participants from different walks of life attended the event, where Dr. Bengali also answered questions from the audience.
He said the economy could no longer sustain yet another ‘privileged economy’ designed to protect vested interests, adding that the latest budget was ‘anti-poor to the point of shamelessness’ and tilted heavily in favour of the elite. ‘There will be hope for improvement only when public resistance grows,’ he said.
Dr. Bengali said the nature of war had changed and that, while defence expenditure should be maintained, non-defence expen
ditures and privileges should be curtailed. He called for the abolition of cantonment boards, arguing that they should be dissolved and their functions transferred to municipal institutions, as had been done in a neighbouring country.
He said the state was no longer focused on development spending or improving the lives of the poor, but had instead become preoccupied with borrowing and debt servicing. According to him, the development of the economy and welfare of ordinary citizens had ceased to be a priority of the state.
Referring to the structure of the economy, he said only a handful of sectors continued to reap disproportionate benefits, including sugar, fertiliser, banking and real estate. He added that budget figures had increasingly become meaningless and were presented in a way that made the situation appear sound, even when the underlying reality was starkly different.
Dr. Bengali also remarked on Pakistan’s recent diplomatic role in the Middle East crisis, saying the country’s mediation efforts
had earned international appreciation and were a matter of congratulation for the leadership. However, he said ordinary Pakistanis were unlikely to gain any direct benefit from the success, except perhaps that the country might find it easier to secure fresh loans.
He criticised the repeated appointment of bankers as finance ministers over the past 25 years, saying they were brought in primarily to facilitate external borrowing. ‘New loans are being taken merely to repay old ones,’ he said.
Speaking on the occasion, Jamaat-i-Islami District Central chief Syed Wajeeh Hasan said the country needed a nationwide ‘Charter of Economy’ to draw the rulers’ attention to the plight of a failing economy and a distressed population. He said political struggle backed by determination was essential because the ruling class understood only the language of power.
He regretted that those currently steering the economy appeared to have little understanding of the gravity of the crisis confronting the country.