Government could save Rs30 billion by closing institutions: Economist Kaiser Bengali

Economist Kaiser Bengali has emphasised that the government's primary focus should be on reducing fiscal deficits, stating that closing down certain institutions could result in savings of PKR 30 billion.

During a press conference in Karachi, Bengali announced his resignation from the High-Powered Committee for Rightsizing.

He expressed concerns that the entire burden of restructuring is being placed on the lower-income segment of society.

Bengali highlighted that there are 40 divisions within the federal government, with recommendations made to review five divisions at a time.

He mentioned that a proposal was put forward to interview the heads of institutions under each division.

He pointed out inefficiencies, citing the example of three population-related institutions that have failed to control the population growth.

He also questioned the rationale behind keeping organisations like the Pakistan Gems and Jewellery Development Company and Pakistan Gems and Jewellers Authority, suggesting that instead of shutting them down, they were inexplicably placed under the Ministry of Petroleum.

Bengali expressed disappointment over the government's lack of interest in reducing expenses, noting that the committee recommended closing only one of the 70 identified state-run institutions.

The committee also suggested privatising 17 commercial entities while retaining 52 others.

He challenged the committee's recommendations to eliminate 150,000 positions from grades 1 to 16 and privatise the Utility Stores Corporation.

Bengali also argued that 17 divisions do not align with the Constitution and should be shut down.

Bengali criticised the committee's composition, which includes political figures rather than technical experts, claiming that these politicians have pre-determined agendas.

He also questioned the effectiveness of organisations like the Small and Medium Enterprises Development Authority (SMEDA), which, despite existing for 40 years, has failed to prevent the decline of small industries.

He urged the government to prioritise reducing expenses, noting that high-interest rates and electricity costs are stifling industrial growth.

The nation is on the brink of bankruptcy, with no external loans or investments coming in, he added.

As a symbolic protest, he announced that he would file his income tax return one day late on 20th September.