Agha Tanveer Iqbal

Islamabad June 14, 2007: The Pakistan Peoples Party is concerned about the negative effect of the Budget on the working and middle classes of Pakistan said former Prime Minister and Chairperson of the Pakistan Peoples Party Mohtarma Benazir Bhutto in a statement today.

Noting that inflation is the main problem facing the country and recalling that inflation is running at ten percent if not more for the last three years consecutively she said that this was the failure of the regime's economic policies.

Calling inflation, "the most unjust hidden tax" on wage earners and workers as well as middle classes and traders, Mohtarma Bhutto said that never in the past history of Pakistan was such high inflation associated with growth.

"The international aid money has not trickled down to the masses" Mohtarma Bhutto said adding, "but instead spent on the ruling classes who are enjoying themselves while the people are suffering".

Mohtarma Bhutto assured the people that the PPP is with them and would continue to fight for their rights. She said Quaid e Awam had created the PPP for the protection of the oppressed, the weak the downtrodden and the discriminated. She said that the vested interests opposed the PPP because it was fighting for the different social groups in the country like the peasants, the labour, for the rights for women and minorities, for opportunities for youth and for the working and middle classes.

Citing the macro weaknesses in the economy, she said that the General Musharaf's regime has done nothing to show that it is cutting on budget deficit that is projected at 4% deficit. The PPP, she said, notes that this translates nominally to Rs. 400 billion, which is a huge sum and will go to further increase prices in the coming year making buying power even weaker for ordinary housewives and workers.

The failure of the regime's economic policies could be seen in the poor position of exports. The PPP noted that Exports are stagnant and the unprecedented current account deficit points to unsustainability of long-term growth. The PPP criticised the regime for not offering anything to exporters in the Budget to stimulate growth.

Recalling the PPP allegations for inquiry into the Prime Minister over the stock market crash of the past years she said that the PPP was also shocked to note that huge tax breaks were given to the super rich. The super rich were making huge profits trading in the stock market and operating in the real estate business. The regime had made all this all tax-free.

The PPP rejected the skewered policy of taxing poor more than taxing the rich. It believes in a balanced budget, which invests in human resource development and seeks to meet the educational, health, housing and drinking water needs of the ordinary citizens of the country.

The former Prime Minster asked the people of the four provinces of Pakistan to come forward and vote for the PPP. "PPP needs a large mandate like mandates enjoyed by the present regime to overcome the obstacles in the progress of the people of Pakistan".