Statement on the open Kutchery at Baldia Town, Karachi, On January 26, 1973

President Zulfikar Ali Bhutto categorically stated that the Government had no intentions of revaluing the rupee and asked the people not to lend ear to rumors in this connection. He said such rumors were spread by vested interests.

The President said that the rupee was already under heavy pressure and there was absolutely no ground for revaluation. “it is not German mark or Japanese yen,” he added.

He made it clear that the Government would maintain the present party of the rupee.

On his attention being drawn to the adverse effect of rumors on investment climate in the country. Mr. Bhutto affirmed that his Government‘s policy had already been outlined and would be strictly followed.

“This policy is based on firm grounds, on an established doctrine and we would not deviate from it.” He emphasized.

He said that his Government would pursue its policies in the light of the PPP manifesto, although the Opposition had been vociferously clamoring that “ we are deviating from the manifesto.”

An industries wanted that the Government should order rescheduling of loans taken by businessmen and industrialists from the Industrial Development Bank of Pakistan.

The President said that it was not possible unless Pakistan got rescheduling of its foreign debts from donor countries. He said that rescheduling was not forthcoming in spite of the fact that Pakistan had devalued its currency.

Negotiations with the donor countries were, however, in progress for the purpose, he added.

When pressed by the industrialists for rescheduling of IDBP loans, the President said; “We will look into the small loans.”

The Chamber’s chief and other members of the two deputations who met the President invited his attention to certain official statements which they said were hindering restoration of confidence in the business community.

The President said that he had clearly stated the policies of his Government and there was no reason for any scare. He said these policies were well known. The pattern, which was being followed for economic development, had been explained several times.

He reminded them that he had already said that there would be no change in this pattern till the next elections in the country.

The President felt that this was enough for the restoration of confidence and if even after this somebody wanted to be disturbed by statements, then he (President) could not help.

The President referred to the state of economy at the time he took over and said that since then his Government had taken a number of steps to put the economy on a sound footing.

He said that the Government had given a number of incentives and facilities to industrialists and businessmen to enable them to play their role effectively in the national economy. It was now their duty to go ahead and try to increase production.

He said that they should realize that the times had changed and times would continue to change. It was, therefore, necessary that they should try to keep up with the changing times.

They should not be “unnecessarily disturbed” as “we are doing everything within our limits.” he added.

He said that since his Government assumed office, “We have turned the corner. An era of consolidation and an era of progress has started.”

Referring to the question of industrial peace, the President said the his Government had taken a number of steps to improve the lot of our workers and more steps would be taken in that direction. He said that it was now necessary that the workers should put in hard labor and increase production.

He said that as in the past the workers had been suppressed and denied their rights, they had taken resort to strikes etc. the Government was taking all steps to bring about industrial peace.

But it did not mean that the industrialists should try to suppress workers and deny them their due rights.

He referred to the complaints of retrenchments in industrial units and asked Provincial Labor Minister Abdul Sattar Gabol to depute staff to enquire into the problem.

To a suggestion that a high-powered commission should be set up, consisting of representatives of loan giving agencies and other organizations, responsible for allotment of land, supply of water, electricity, gas and for sanctioning new industrial projects, the President and that it would be examined by the concerned Ministers.

He also asked the Ministry of Finance to make turnkey arrangements for sanctioning industrial projects.

Referring to a suggestion made by an industrialist for allowing more facilities to attract foreign capital for investment in Pakistan, the President said that the Government had taken a number of steps in that direction. He also referred to the setting up of as office of the Industrial Development Bank of Pakistan in London.

To a demand that the Government should consult businessmen and industrialists before concluding barter trade agreements, the President said that the Ministry of Commerce would look into it.

The deputationists also complained about the self-assessment scheme of income-tax and requested the President to order simplification of the procedure.

The President said that the scheme of self-assessment, which was introduced by the then Finance Minister, Mr. Mohammad Sohaib, could only serve the purpose if it was properly and honestly followed. But tax evasion was still taking place. He recalled that at the time when he was Minister, he had taken a random sampling under this scheme and 50 to 60 percent people gave wrong statements. If such a situation continued, how thing would improve, he asked.