Karachi: Renowned economist Dr. Kaiser Bengali has resigned from the Austerity Committee, established by Prime Minister Shehbaz Sharif to reduce government expenditures, citing a lack of genuine commitment to curbing excessive spending.
In his resignation letter, Dr. Bengali expressed deep disappointment, noting that despite reviewing 70 government organizations, the committee recommended privatizing only 17 commercial entities, retaining 52, and shutting down just one. He criticized the government’s failure to address the country’s fiscal crisis adequately, emphasizing that the priority should be to “stem the fiscal hemorrhage” threatening the economy and the nation’s survival.
During a media briefing at the Karachi Press Club (KPC), Dr. Bengali revealed that the committee’s focus had shifted towards making existing government entities more efficient rather than implementing necessary cuts. He also challenged the decision to eliminate 150,000 low-cost Basic Pay Scale (BPS) 1 to 16 positions, arguing that the burden of austerity was being unfairly placed on lower-income groups, while high-cost senior positions remained untouched.
In his report to the committee, Dr. Bengali had recommended abolishing 17 government divisions and nearly 50 organizations, which could have saved over Rs30 billion annually in non-salary costs. He warned that the economy was “in a state of collapse,” surviving only on a “debt ventilator,” with even the International Monetary Fund (IMF) and friendly nations reluctant to extend further loans.
Dr. Bengali further highlighted the ongoing exodus of foreign investors from Pakistan, describing it as a process of “reverse FDI” (Foreign Direct Investment), and expressed concern over the stalled privatization of State-Owned Enterprises, as there were no bidders for these assets.
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