KARACHI: Economist Kaiser Bengali has urged the government to prioritize reducing the fiscal deficit, suggesting that shutting down inefficient institutions could lead to savings of PKR 30 billion. Speaking at a press conference in Karachi, Bengali also announced his resignation from the High-Powered Committee for Rightsizing, expressing concerns that the restructuring burden is unfairly falling on lower-income segments.
Bengali highlighted the bloated structure of the federal government, noting that there are 40 divisions in total, with recommendations to review five at a time. He advocated for interviewing the heads of institutions under each division to assess their effectiveness.
He pointed to inefficiencies within government bodies, using three population-related institutions as examples of entities that have failed to control population growth. Bengali also questioned the rationale behind maintaining organizations like the Pakistan Gems and Jewellery Development Company and the Pakistan Gems and Jewellers Authority, noting that they have been inexplicably placed under the Ministry of Petroleum instead of being shut down.
Bengali expressed disappointment over the government’s reluctance to cut expenses. He revealed that the committee had identified 70 state-run institutions for potential closure but recommended shutting down only one. Additionally, the committee suggested privatizing 17 commercial entities while retaining 52 others.
Bengali challenged the committee’s proposal to eliminate 150,000 positions in grades 1 to 16 and to privatize the Utility Stores Corporation, arguing that 17 government divisions do not align with the Constitution and should be eliminated.
He criticized the committee’s composition, which includes political figures rather than technical experts, accusing these politicians of having pre-determined agendas. Bengali also questioned the effectiveness of the Small and Medium Enterprises Development Authority (SMEDA), which has existed for 40 years yet has not been able to prevent the decline of small industries.
Bengali urged the government to focus on reducing expenses, pointing out that high-interest rates and electricity costs are stifling industrial growth. He warned that the nation is teetering on the brink of bankruptcy, with no external loans or investments forthcoming.
In a symbolic gesture of protest, Bengali announced that he would file his income tax return one day late on September 20th.
