Under pressure NA panel cancels figure fudging probe
A parliamentary panel cancelled a probe into allegations of tax figure fudging under alleged pressure of the main accused, while the finance minister, said to be ‘pretty disturbed’ over the issue, purportedly lacks political support for taking any action.
The cancellation of the panel meeting comes at a time when international lenders have expressed serious concerns over the credibility of economic statistics provided by the government.
Federal Board of Revenue (FBR) Chairman Salman Siddique claimed on June 30 that the government had exceeded its revised revenue collection target of Rs1,588 billion, but was forced to admit last Friday that the real figure was Rs1,550 billion.
Influencing the chairperson
A meeting of the National Assembly standing committee on Finance and Revenue had been convened to probe the discrepancy in tax collection figures that has embarrassed the country’s economic managers.
Sources told The Express Tribune, however, that FBR chairman approached the panel chairperson, Fauzia Wahab, and convinced her to cancel the event.
Wahab was not available for comment and her personal staff said the meeting was cancelled “after madam fell sick.”
“The chairperson should be replaced,” said Shahid Khaqan Abbasi, member of the standing committee from the main opposition party, the Pakistan Muslim League-Nawaz.
“Her attitude is unprofessional and she is deciding important policy issues on her own,” Abbasi said.
Finance minister handicapped
Sources said Finance Minister Dr Abdul Hafeez Shaikh was ‘pretty disturbed’ over the issue but was handicapped due to absence of political backing.
Shaikh is also concerned over the administrative and political cost of making changes at the level of finance secretary and FBR chairman, sources said.
They added that instead of punishing those who have become a source of embarrassment for the country, there are indications that these people would either continue serving at the same position or, worst still, be rewarded due to strong political backing.
“It is an issue of nation’s credibility but no one at the helm of affairs seems to be bothered about it,” said a senior federal functionary.
Donors’ concerns
The international donors’ community has also expressed serious concerns over the reports of fudging in tax collection figures. Other countries, and not just the International Monetary Fund (IMF), are closely watching the episode.
“They cannot block assistance to Pakistan but they will definitely look at every number with suspicion,” said the federal functionary.
Sources said the IMF was still waiting for formally receiving the tax collection and budget deficit data from Pakistan.
After receiving the numbers they would definitely ask if they are credible, said the functionary.
Sources said that despite this major blunder, an IMF staff-level mission would still visit Pakistan by end August or early September.
The mission’s assessment report would then determine the fate of the suspended $11.3 billion bailout programme.
During the last fiscal year, the revised tax collection target was missed by Rs38 billion while the budget deficit swelled to Rs1,174 billion, or 6.5 per cent of the total national income.
The government also failed to make any headway on energy sector reforms.
Published in The Express Tribune, July 27th, 2011.
COMMENTS (8)
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Whether thr figures have been handed over to the IMF or not, the people and the media have been misled. This is enough reason for heads to roll if Pakistan was a normal country
If the figures have not been formally handed over to the IMF, there is no violation.
To be sure they are watching very closely this sordid drama being played out.
Let is not forget that Pakistan HAS been fined millions of dollars for cooking the books some time ago.
This reflects what kind of people we Pakistanis are.
This governmen't's priorities are very simple: Friends first . . . Pakistan last. Any people accepting positions of responsibility within this government should be aware that they will be asked to protect the wrongdoings of their leader. They will not be serving the people, but their master.
What a mess. This whole system stinks. Wrong is done and then covered up. Where is the independence of the elected members of National Assembly.
IMF will not give any money under existing programme. They are tiered of false promises,false data coming out of Pakistan.
That's just it. It was expected. Wonder why it took three days to cancel the probe and NOT punish the CULPRITS. Salman Siddique has added another slap of shame to this beautiful country of ours. The people who claim to be patriots are to put it simply, ENEMIES OF THE STATE. There are no two thoughts about it. Salams to Pakistan.
Salman Siddiqi has disgraced Pakistan and further dented our international credibility. He should be punished, not rewarded.