Mustafa Kamal calls for national roadmap to reduce reliance on interest based system

Federal Minister for Health Syed Mustafa Kamal called for serious national thinking on Pakistan’s interest based economic system,

Islamabad: Federal Minister for Health Syed Mustafa Kamal called for serious national thinking on Pakistan’s interest based economic system, saying the country cannot end it suddenly but must at least begin finding a practical way forward while also dealing with population growth, weak local governance, health challenges, education needs, Karachi infrastructure and water supply issues.

Speaking during the budget debate, Syed Mustafa Kamal said Pakistan must reflect on the warning in the Holy Quran regarding interest, or sood. He said the country’s system cannot be switched off in one day, but national leaders should sit together and start finding a path to reduce dependence on it.

He said a large part of Pakistan’s debt is local debt, and therefore the country should not ignore the issue. He added that Pakistan has received great blessings and successes recently, and the country should make sincere efforts in every area where improvement is needed.

The minister said the budget is made for people, so the first question should be how many people are living in the country and where the population is heading. He said Pakistan’s population has reached around 26 crore, while 6.7 million newborns are added to the system every year.

He said Pakistan is adding a population larger than New Zealand every year. According to him, the country’s population growth rate stands at 2.55 percent, while the fertility rate is 3.6.

Syed Mustafa Kamal warned that if the same trend continues, Pakistan will become one of the world’s largest countries by population in the coming years. He said the population may reach more than 30 crore in the next decade and around 40 crore by mid century.

He said these numbers are directly linked with health, education, jobs, housing and public services. According to him, if population growth is not controlled, every budget will remain under pressure.

The health minister said Pakistan loses around 11,000 mothers every year during pregnancy. He said pregnancy is not a disease, and such deaths can be prevented through better health services, awareness and planning.

He said that whenever people die in a terrorism incident, disaster or tragedy, the whole country mourns. However, the country does not fully realize that thousands of mothers are dying every year during pregnancy.

He also said around 315,000 children between one and five years of age die in the country. He added that 40 percent of children are stunted, which means their physical and mental growth is affected because of poor nutrition and health conditions.

Syed Mustafa Kamal said around 26.2 million children are out of school. He said if the population continues growing at the same pace, Pakistan will need 66,000 new primary schools and 680,000 teachers.

He said the country will also need jobs for around 65 million young people, nearly 3,600 new primary hospitals, around 165,000 hospital beds and about 20 million new houses. He questioned whether the current budget system has the capacity to meet such massive needs.

The minister said population growth is the “mother of all problems” because it affects every other sector. He said Pakistan can present large numbers in budgets every year, but if the population issue is not addressed, the pressure on public services will keep increasing.

He said surrounding countries, including Iran, Bangladesh and India, have worked on population control. He said their economic progress came after they managed population growth, and Pakistan must also take this issue seriously.

Syed Mustafa Kamal also raised the issue of the National Finance Commission Award, commonly known as the NFC Award. He said the present formula gives very high weightage to population when distributing resources among provinces.

He said around 82 percent weightage in the NFC formula is based on population, which can discourage provinces from controlling population growth. He gave the example that if a smaller province wants more funds under this formula, it may feel pressure to increase its population.

The minister proposed that population weightage in the NFC formula should be reduced. He suggested keeping 50 percent on population and using 32 percent as a reverse incentive for provinces that make real efforts to slow population growth.

He said other countries have much lower population weightage in their resource distribution formulas. According to him, Pakistan should also reward provinces that take practical steps for population control.

Syed Mustafa Kamal appreciated the Prime Minister and the Finance Minister for removing General Sales Tax from contraceptives. He said this was a long standing demand and a very important step for population management.

He said the removal of tax on contraceptives could help reduce around 1.5 million to 1.6 million births annually. He described it as a low-hanging fruit that can bring a major impact.

He said family planning should not be linked with the fear of food or rizq, because religion teaches that Allah provides sustenance. Instead, he said the message should be linked with saving human lives, especially the lives of mothers.

He said many mothers die because their bodies are not strong enough for repeated pregnancies. He said saving these mothers means saving humanity.

The minister also highlighted the role of awareness campaigns. He praised a private media firm for working with the government on a major campaign called “Waqfa,” aimed at creating awareness about spacing between children and responsible family planning.

He said the Health Ministry and Finance Ministry have worked together on the National Population Stabilization Programme, also called NPSP. He said this programme provides a roadmap for population stabilization in Pakistan.

Syed Mustafa Kamal said the next major issue is how public money reaches ordinary citizens. He said the current governance system does not allow resources, authority and solutions to reach people at their doorstep.

He said the total federal budget is around Rs18.7 trillion, out of which around Rs8.848 trillion is transferred to provinces through the divisible pool. However, he said this money goes to four provincial chief ministers, and there is no strong system below that level to ensure proper distribution to districts and citizens.

He said the Provincial Finance Commission system is not properly working, which means funds and powers do not trickle down to local levels. He said if Pakistan had a strong devolved local government system, the country would have around 180,000 public offices instead of only around 1,200 offices of parliamentarians and elected representatives at higher levels.

He said 1,200 offices cannot properly reach the needs of millions of citizens. He stressed that a strong local government system is necessary if Pakistan wants to deliver services at the doorstep of the common man.

Syed Mustafa Kamal referred to the Octroi and Zila Tax system, known as OZT, and said districts were earlier supposed to receive funds through that mechanism. He said after changes in tax distribution, those funds became part of the NFC Award, but districts did not continue receiving their proper share.

He said if the earlier system had continued, Karachi would have received a major amount directly from the federation. He also referred to around Rs200 billion linked with port related access and infrastructure development, saying such resources should support the city’s needs.

He said Karachi forms a major share of Sindh’s population and should receive a fair share in development spending. He also said Hyderabad would have benefited if the district-level funding system had worked properly.

The minister said he was not questioning anyone’s intentions but pointing out flaws in the system. He said Pakistan must focus on what is being said rather than who is saying it.

He urged Parliament to seriously consider the proposed constitutional amendment related to Article 140A, which deals with local government. He said this amendment can help improve governance and bring authority and resources closer to the people.

Syed Mustafa Kamal also spoke about road infrastructure, especially the road from Sukkur to Hyderabad. He said the project should not be treated only as the Sukkur Hyderabad road, because the real requirement is a proper route from Karachi to Sukkur.

He said the Karachi Hyderabad route is not a real motorway but an expressway. According to him, the main road link begins from Karachi Port and goes up to Peshawar, so the missing link should be seen from Karachi to Sukkur, not only from Hyderabad to Sukkur.

He also raised the issue of heavy traffic in Karachi. He said the Northern Bypass was built for heavy traffic, but many trailers still pass through city areas at night, including Federal B Area, Liaquatabad, Water Pump and Nazimabad, causing serious traffic problems.

The minister said Karachi needs a proper dual road system from the port to Sukkur so heavy traffic can move outside the city and public movement can improve.

Syed Mustafa Kamal also raised concerns about the K-IV water project for Karachi. He said the project is meant to bring around 260 million gallons of water per day to Karachi after spending a very large amount.

However, he said bringing water up to Karachi is not enough. He said internal lines and augmentation are required so the water can reach Lyari, Defence, Baldia, Orangi, Nazimabad, Federal B Area and other parts of the city.

He warned that if the existing old water lines are used without proper capacity, K-IV water may still not reach citizens even after completion of the project. He said there is a risk that the water could end up being sold through tankers instead of reaching homes.

The health minister also praised Pakistan’s recent diplomatic and security achievements. He said Pakistan played an important role in helping bring peace during the Iran America conflict and credited Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and the national leadership for their role.

He said Pakistan’s position in the world improved after the country showed strength and unity. He said the nation stood together and Pakistan earned respect internationally.

Syed Mustafa Kamal ended his speech by calling for national responsibility, unity and honest efforts to fix Pakistan’s major problems. He said the country must address population growth, governance, public service delivery, infrastructure, water, health and the interest-based system with seriousness.

He concluded with prayers for Pakistan’s stability and progress, saying Pakistan Zindabad and Pakistan Paindabad.