ISLAMABAD, Dec 4: Opposition senators on Wednesday held the government`s poor economic policy responsible for the current wave of unprecedented price hike in the country, alleging that rulers were busy in providing relief only to capitalists and the corrupt.

`The present government is the representative of capitalists and it is providing relief only to them,` said parliamentary leader of the Pakistan Peoples Party Raza Rabbani while initiating a debate on a motion about `the recent price hike, specially the prices of petroleum products, gas and electricity as well as other essential items`.

Criticising the government`s recent policy of giving amnesty only to those who would make investments in the country, Mr Rabbani alleged that a `VIP package` had been offered only to the already privileged class of people.

The PPP senator regretted that the government was not passing on the relief to the masses despite reduction in price of oil in the international market. He said that on one hand, the middle-class people were paying electricity bills after borrowing money from others and on the other, factory owners were busy in stealing electricity.

Showing copy of a newspaper, Mr Rabbani said when the PPP-led government had announced a tax amnesty scheme aimed at increasing tax base, the incumbent finance minister and the then opposition leader Ishaq Dar had termed it a `financial NRO`. He said the PPP wanted to launch the scheme through legislation and parliament whereas the present government had done it through an executive order.

Haji Adeel of the Awami National Party called for a 50 per cent reduction in salaries of senior functionaries in the judiciary, military and bureaucracy. He warned that if the middle class was eliminated from society the country would face a revolution in which no one would be safe.

Tahir Mashhadi of the Muttahida Qaumi Movement termed the collection of fuel adjustment charge from the people `extortion` PML-Q`s Kamil Ali Agha said the people had started blaming democracy for their poor economic conditions and warned that if the people did not get any fruit of democracy, the history would repeat itself and people would be seen distributing sweets again as had been the case over the dismissal of the PML-N government by retired Gen Pervez Musharraf.

Saeed Ghani of the PPP accused the PML-N government of printing currency notes worth Rs900 billion during its first five-month rule. He further said the government had not providedRs28bn to the Pakistan Steel Mills, but it was spending Rs24bn on distribution of laptops and it arranged from nowhere an amount of Rs500bn for payment of circular debt to independent power producers (IPPs).

During the question-hour, the opposition gave a tough time to the government on the issue of payment of Rs500bn circular debt to IPPs.

Senate`s Deputy Chairman Sabir Baloch deferred questions relating to the circular debt after Minister of State for Commerce Khurram Dastagir Khan, who was giving replies on behalf of Finance Minister Ishaq Dar, failed to give satisfactory replies to questions asked by members.

Senator Farhatullah Babar said that no third party audit had been carried out and payments had been made to IPPs as demanded and settied by the Ministry of Finance. It was of critical importance to carry out audit of the fuel supplied,the power produced in relation to the fuel supplied and plant utilisation capacity of each power plant before accepting their claims, he said.

The minister replied that the payment had been made after verification by Pepco, but no third party audit had been carried out. The minister further said a complete answer could be given about the third party independent audit only by the Ministry of Finance for which a fresh question would be required.

The issue came up for discussion after PPP`s Sughra Imam asked the finance minister to disclose sources of generation of Rs500bn paid to IPPs.

Finance Minister Ishaq Dar through a written reply informed the house that all payments relating to government expenditure were made out of Federal Consolidated Fund which consisted of revenue receipts, loans and recovery of loans. He said no specific borrowing from banks was made for the purpose.