He was responding to former Chairman Senate Raza Rabbani who, while speaking on an adjournment motion, said that the country's economy is in total control of the International Monetary Fund (IMF) as both - Adviser to the Prime Minister on Finance Dr Hafeez Sheikh and State Bank of Pakistan (SBP) Governor Dr Reza Baqir - had worked with them.
"The major concern is that our economy is in total control of the IMF...the PM's adviser on economy and recent appointment of SBP governor is total surrender of Pakistan's financial sovereignty to the IMF. And now the concern is that NFC and process of devolution will be rolled back on the dictation of the IMF," said Rabbani.
Referring to leaked documents pertaining to American national security manual by Wikileaks, he said that it says that institutions like IMF, World Bank and other such financial institution are used by the US and its army in furthering their agendas.
"This is what we are witnessing in the country today, as our economy is in total control of people who have worked with IMF for so many years, and the new SBP governor is coming straight from IMF," he said.
This prompted Qureshi to remind Rabbani to recall whether Dr Sheikh - who was brought in as finance minister when PPP was in power from 2010 to 2013 - was brought in on the orders of IMF by the then leadership of his party. "Baqir is a Pakistani and he doesn't need any certificate of patriotism from anybody. He's coming to serve his country by forgoing a highly paid job with the IMF just to serve his own country," he added.
The foreign minister also dispelled the impression that the country is heading towards one-unit system or a presidential system is being brought in the country. About delay in announcement of National Finance Commission (NFC) Award, he said that it is due to Sindh which is intentionally delaying the nomination of its ex-officio member.
He said the President constituted the 9th NFC award but despite repeated requests by the former Finance Minister Asad Umer, the provincial governments, especially Sindh, delayed the process of nominating their representatives for the NFC award. He said the government is committed to announcing NFC award as previous PML-N government failed to fulfil its constitutional requirement in its five-year term.
The foreign minister said the government tried its level best not to approach the IMF, but it had to seek an IMF package because of the damage inflicted on the economy over the last ten years. "Our friendly countries - Saudi Arabia, China and the United Arab Emirates - gave us the much needed balance of payment support but the gap is so huge that we have to go to the IMF to secure a economic package," he added.
Rabbani said that the Prime Minister has said due to 18th Amendment, the Centre gets no money, adding he says it all as he is surrounded by people who are against devolution process, majority of whom are IMF lobbyists, who toe the line of their institution.
Rabbani said another issue is foreign loans, which were taken without taking the provinces onboard, adding even the matter was not discussed in the meeting of Council of Common Interests (CCI). He said that sales tax on services is going to be centralised, saying State Minister for Revenue Hammad Azhar had also confirmed that it's being done to facilitate provinces. The PPP stalwart warned if a unified tax collecting agency is formed, it will be a brazen violation of the Constitution.
He said the Prime Minister has said that provinces have failed to collect tax, which is a white lie, as during the last ten months Sindh Revenue Board collected Rs 127 billion revenue which is 6 percent more than the target.
He said that there is a question mark on NFC announcement date, as the Prime Minister being the minister in-charge of Finance Ministry will have to preside over the NFC meeting, which seems quite unlikely.
He said, "IMF has always been against the provincial autonomy and NFC, as we witnessed its resistance against 18th Amendment back in 2010." He said that main stumbling block for IMF is new NFC as it should not be less than the previous NFC, but IMF is bent upon that new NFC should not be increased.
"The former caretaker finance minister [Dr Shamshad Akhtar], who had long association with World Bank and IMF, had carried out a study and pinpointed how 10 percent share, which goes to provinces on divisible pool, can be reduced, but the present government said it's going to implement it, but now it seems that study is being implemented," he added.
Senator Mushahidullah Khan of PML-N said that SBP governor has all the secret information pertaining to the economy of the country, but even then, the government handpicked a serving IMF employee as SBP governor which is no less than a 'surgical strike' on Pakistan's economy.