KARACHI. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded a high level inquiry into loans taken by former Finance minister , Dr Abdul Hafeez Shaikh, that, it claimed, added burden of Rs 1100 billion on national econony, besides adding Rs 2500 billion debt servicing burden on Pakistan.
A 2-page letter formally signed by FPCCI president, Mian Nasir Hayat Magoon , called upon Finance minister , Shaukat Tarin, who is currently in Washington for crucial talks on getting more loans for Pakistan, said Pakistan’s economy was intentionally damaged by the government economic team led by Dr Abdul Hafeez Shaikh , by jacking -up interest rate in 2020 at 13.5 % that passed on unbelievable profit to the banks, but damaged the national economy by diverting Rs 1100 billion undue benefit to the domestic banks and increasing pressure of Rs 250 billion debt servicing on the country in just one year.
Hafeez Shaikh and Governor State Bank of Pakistan (SBP), Raza Bakir, had brought a novel concept of hot money to Pakistan to pass on undue benefit to their “Investors”. To keep their “Investors” make windfall prifit on hot money , Hafeez Shaikh, and Governor SBP Raza Baqir kept interest rate at 13.5 %.
FPCCI president said the government should investigate as to why Dr Abdul Hafeez Shaikh and his like-minded top government econimic team members jacked- up the interest rate as high as 13.5 % when inflation rate was between 8 to 9 %. Governor SBP, Raza Bakir, was equally involved in introducing the hot money concept to Pakistan and keep interest rate at higher end to pass on undue benefit of hundreds of billion to dubious investors. Many in Pakistan believe Dr Abdul Hafeez Shaikh and Raza Bakir are a part of an international raket that keep on looking for opportunity like they generated in Pakistan by introducing hot money concept to bag huge money on investment.
FPCCI president also reminded Shaukat Tarin that he should avoid more taxes on traders and undustrialists in want of more loans from IMF. He said traders and industrialists were already over burdened and any move of the government to add on more taxes on it would be counterproductive.
Magoon also demanded that Shaukat Tarin should keep outcome of his talks with IMF transparent.