A country facing foreign debts and liabilities to the tune of $125Billion needs to wake up to the existential threat it faces, which is mostly of our own making. What can be worse than the fact that the federal government after disbursing shares to provincial governments, does not have enough left to pay annual debt servicing charges. More debts have to be taken to pay back installments due in foreign exchange. This is a Catch 22 viscous cycle, and there seems to be no long-term concrete plans to get out of this quagmire. People of Pakistan must realize gravity of crisis and start asking politicians, who seek their votes for elections due in February 2024, for solutions to salvage the economy.
It goes to the credit of CJP Pakistan and the SC, that without transgression of constitutionally defined boundaries of trichotomy of power, they were able to resolve this crisis of election date, which should have been resolved by politicians. This was a crisis created by gross incompetence of those, that held constitutional public offices in the recent past. Every government, both civil and dictatorial is responsible for the mess Pakistan faces today. The deficit between revenues and expenditure has risen to a level, where national sovereignty and state security is liable to be compromised. We cannot ignore enormity of the crisis that Pakistan faces, because of years of mismanagement, financial indiscipline and living beyond our means.
The decision taken by the Caretaker Government to curtail smuggling of essential food items and foreign exchange is a step in the right direction. It had upset the essential supply chain of basic food items, creating artificial shortage and price escalation. MAJ in his speech on 11 August termed this as a “colossal crime against society, in our distressed conditions, when we constantly face shortage of food and the essential commodities of life”. Talking of those involved in black marketing and hoarding etc he stated “They ought to be severely punished, because they undermine the entire system of control and regulation of food-stuffs and essential commodities, and cause wholesale starvation and want and even death”.
The big retail and wholesale traders, who do not pay taxes due from them, are beneficiaries of smuggled goods that are imported in the guise of Afghan Transit Trade, but instead finally end up being sold in Pakistan. The markets are flooded and everyone is aware of this illegality. Pakistan’s elite are beneficiaries and so are the traders, but the national exchequer is the big loser. Many political parties consider retailers as their constituency and have facilitated both tax evasion and curse of smuggling that has gone on for decades, irrespective of who is at helm. This could not have happened without facilitation of powerful quarters. The terrorists used these same loopholes to smuggle armed aliens and explosives involved in gruesome acts of carnage and explosions that have killed hundreds of thousands in Pakistan.
All this was going on for decades, fully in the know of two provincial government on our western borders and state institutions deployed and paid from national exchequer to stop this illegality. Finally, someone had the courage and integrity to muster the courage to stop this irregularity. Both the Caretakers and head of security establishment of this country deserve appreciation, for taking this decision, which should have been taken decades ago. One only hopes that they are able to achieve the objective and resist pressures of vested interests, who benefitted from this illegality. However, their decision to raise salaries and perks of top bureaucrats in management position MP1, MP11, MP111 scales by a flat 45% with effect from 1st October, or sanctioning of over Rs 2.3 billion by Punjab Caretakers on 20 July for purchase of luxury vehicles to district management officers is an unwise decision. It must be reviewed.
The State must be seen to observe austerity starting from the very top, given the acute financial crunch Pakistan faces. This practice of declaring private residences as multiple camp offices of constitutional office holders must be eliminated, especially when state owned houses exist in the same city or town. It is also time that this practice of appointing cronies to head SOE must stop. PIA, once an emerging airline of repute in the region is one such example of an SOE that has been driven to insolvency, despite having abundance of ethnic passenger traffic and routes to operate profitably.
There is no shortage of qualified professionals, yet individuals who were just high school pass were appointed at helm, including those with a history of controversies such as their involvement in the Kidney Hill land scam in Karachi. PIA Investment created by Noor Khan to supplement the airline, has become a liability. Its hotel in Manhattan NYC was closed for years, because of mismanagement by controversial cronies who have managed to be at helm through networking. PSM is another SOE driven to bankruptcy by controversial cronies appointed by successive governments.
With general elections announced to be held on 8th February, political parties must offer blueprint for raising revenues through direct taxation, without burdening the poor and middle classes with indirect taxation. This abuse must stop forthwith. It is time that people of Pakistan start asking questions from those seeking votes to represent them, instead of being fed the rhetoric of empty promises and resist exploitation of religion, by those who have held power. Almost all these political parties, including PML-N, PPP, PTI etc have held power at the federal and provincial levels.
While individuals who held power, legitimately or illegitimately, have benefited financially, the country has become poorer, and millions more live below the poverty line. There is no other option left, but to levy direct taxation on real estate, big landlords, retail and wholesale traders, withdraw subsidies to sugar and fertilizer cartels, impose taxes on tobacco etc. Subsidies extended to the elite and powerful foundations and cartels must be withdrawn.
—The writer is contributing columnist, based in Lahore.
Email: [email protected]
Views expressed are writer’s own.
