Khawaja Asif calls for dismantling ‘elite capture’ of country

Islamabad: Defence Minister Khawaja Asif has said certain sectors were involved in tax evasion worth billions of rupees.

Speaking at the National Assembly (NA) on Wednesday, he expressed deep concern over what he referred to as “elite capture,” stating that certain sectors have taken control of the country’s vast resources.

The minister said that Pakistan has reached a critical state of affairs where interest payments on loans surpassed the country’s total income.

He said that the issue of continuous waste of resources for decades has resulted in severe financial strain.

Without naming, Asif said that two institutions have burdened the country with a debt exceeding Rs1,000 billion. He said that one institution has accumulated a total debt of over Rs700 billion, with a staggering Rs86 billion allocated solely for interest payments.

He argued that keeping such institutions operational was a crime and suggested to do away with them.

Asif criticized poverty alleviation organisations for excessively compensating their CEOs (chiefe executive officer) and COOs (chief operating officers), who continue to cling on their positions through stay orders.

He referred to an IPSOS (Institut Public de Sondage d’Opinion Secteur) survey that highlighted industries involved in tax evasion within Pakistan.

The minister highlighted that the tobacco industry evaded roughly Rs240 billion in taxes, with only two companies contributing 99% of the taxes. He expressed alarm over individuals associated with the tobacco industry holding seats in parliament.

Asif highlighted the real estate sector for evading approximately Rs500 billion in taxes through fraudulent invoicing and manipulated land valuation schemes.

He further expressed concern over influential figures within the sector who seem to evade public scrutiny.

Asif pointed out tax evasion of Rs50 billion and Rs56 billion in the automobile and automotive lubricant industries, respectively. He also shed light on a tax theft of Rs45 billion cleverly disguised as tea imports.

Asif called for dismantling the ‘elite capture’ saying government’s efforts have so far yielded limited success in addressing the issue.