There is no doubt that decades of misgovernance and financial indiscipline by successive governments at helm since 1956, has inflicted upon Pakistan its worst economic crisis. In such circumstances, all citizens must rise above self-interest and equitably share burden of taxes, without any exception or waivers to a particular group, so that maximum revenues are generated for a balanced budget. The present government must be complimented for taking up the challenge, when others were not willing. However, failure is not an option and will adversely impact their political fortunes. The void left is likely to be filled by a populist party, whose leaders smell of narcistic tendencies. In such a situation, austerity measures should be adopted, starting from the top, so that the sentiments and anger of majority of citizens, already burdened by inflation, price escalation and unemployment, is not kindled with. Giving tax exemptions to over pampered paid elite, on sale of subsidized plots, which were allotted to them, was like adding salt to injury of the majority. The recent rout of Conservative Party in UK, should be an eye opener to political leadership of this country. It was an ill-advised decision by a billionaire turned politician PM Rishi Sunak, to withdraw taxes on sale of Champagne, whilst simultaneously announcing reduction of subsidies from schools etc. Such decisions are reflective of the mindset of those at helm and evokes anger and sentiments of their constituents, which is exploited by political opposition.
Pakistan’s one sided PPAs with IPPs and the corruption riddled distribution system, has created hurdles in its economic growth. The unfettered and ludicrous, capacity payment agreements signed by successive governments, hostage to their conflicts of interests, suited beneficiaries of 42 IPP units, but has become the proverbial Sword of Damocles that threatens our sovereignty. The generation cost is highest in the region, and distribution line losses so high, that other electricity theft, there is no other technical reason. The paid bureaucracy which cannot control electricity theft in nexus with powerful consumers, has no right to exist. It does not make sense, that financial benefits of these IPP units continue, whilst the state goes bankrupt. A judicious settlement of the Energy crisis, for the collective national interest of 240Million citizens of Pakistan can be worked out, if this country was not hostage to conflicts of interest of those holding important assignments in the corridors of power, including powerful stake holders, and the owners of these 42 IPPs. The PTI government during its tenure, extended contracts of few IPP units on maturity of their 17-year PPAs. Similarly, the PMLN/PPP government has also followed suit. In essence, there is hardly any difference in the priorities and interests of PPP, PMLN, PTI etc.
Claims of an austerity drive by this government, are as hollow, as were those of their predecessors. Austerity by elected public officers, maybe symbolic, but has an impact. The outgoing Dutch PM Mark Rutt, after serving for 14 years, handed over power to his successor, left office riding his bicycle. There is no doubt that there is an existential threat of terrorism for Pakistan’s elected elite, to justify use of expensive bullet proof vehicles, but then why should there be a fleet of protocol cars following them. We had a former PM, who never tired talking of Riyasat Medina, but he chose to fly on a helicopter from his home to his office. The disconnect is also visible in their physical appearance, wearing expensive branded dresses and watches etc., giving serving sermons on Islam and simplicity, addressing people living in abject poverty.
This country is technically insolvent, relying on foreign and domestic debts, to meet administrative costs, because after payment of debt servicing etc., there is not enough fiscal space to pay salaries and pensions of state employees. Can any government justify import of expensive SUVs for paid government officers of a country with a TAX-GDP ratio as worse as Pakistan. Do our civil servants in the FBR deserve such benefits when they cannot collect taxes due from all citizens earning above a declared annual income. If tax-paying citizens of Pakistan can use local assembled cars, why cannot its elected or paid elite? This abuse and hypocrisy must stop, before the rage and anger of people, on the verge of hunger and desperation comes out on the streets. Pakistan was created to be a modern democratic welfare state for all its citizens, and not a state hostage to insatiable greed of few, whose appetite for freebies and perks seems to be unlimited, totally disconnected to this country’s bleak economic situation. The masses are not responsible for the mess that Pakistan faces, but its paid or elected elite is. It is their incompetence and mediocrity which has played a major role in economic plight we are confronted. As for the masses, they can only be blamed for allowing themselves to be exploited repeatedly in the name of religion or ethnicity and sectarianism. MAJ and pioneers of the political struggle never exploited religion and they gave us a country. All others who exploited religion have only harmed this country. Pakistan’s territory has shrunk under the watch of such men.
—The writer is contributing columnist, based in Lahore.
