THE origin of pension is from “Old French Pension” a reward for past services rendered by an individual on a regular basis, or an annual payment. It started in 1520’s as regular periodic payment to a retired person on account of age or disability. The basic concept was “Money paid for board” to assist him to sustain expenditure for sustenance and meet basic minimal needs, and not to live in luxury, as is the case for privileged elite of Pakistan. Pension schemes in the West are based on a self-contributory fund or trusts, where the beneficiary while in service contributes a fixed amount, and receives a regular amount after retirement.
When the British Colonialists expanded their empire to countries like India, they needed to buy loyalties of natives, willing to serve interests of HM Governments. Lands and titles were offered to buy loyalties of natives in the colonies under their occupation. This became imperative because of lack of British manpower. They needed armed militias comprised local natives, under command of a British officer to suppress any movement or uprising which were put down ruthlessly, such as Jallianwala massacre. Similar was the practice by other French or Dutch etc. Paid British Officers serving in England were never allotted state lands, nor did they offer houses spread over acres to their civil or uniformed officers. They all lived in modest houses, owned by local councils or the monarchy etc.
What Pakistan needs desperately, is a complete decolonization of the mindset of its paid or elected elite, whose ostentatious lifestyle has become a burden, which this country, in the midst of an economic quagmire cannot afford any longer. We live in a country where the vast majority live below poverty line, deprived of basic needs, like clean drinking water. No system in the world, including a democracy or socialism or an authoritarian government like in Singapore, can survive without a workable social security system for the most deprived. Failure to do so is a recipe for disaster and internal unrest which can threaten state security and sovereignty from within.
Pakistan’s Finance Minister, in his budget presentation on the floor of NA stated that Rs839 Billion has been reserved for expenditure of civil administration, as compared to Rs1014 Billion for pension emoluments. In addition to this Rs1363 Billion is allocated for subsidy on electricity, gas and other sectors. To begin with this country needs to undertake a complete restructuring of pension benefits and perks of its paid or elected elite. Those retired state employees who were eligible to get employed if they were citizens of Pakistan, must be deprived of all such pensionable benefits and perks once they pledge oath of allegiance to another country, which offers them social security benefits. Their eligibility to get pension etc., must cease as soon they take oath of citizenship of another country and are eligible to social security benefits, or acquire permanent residency status.
It is important to understand importance of having horizontal equality by the state in its taxation policies. If this state considers it just to levy taxes on all individuals who earn above Rs6 Lakh annually, then this taxation must also be levied on all pensioners getting above this annual limit. In any case pension emoluments must be just enough to sustain an individual in his old age. The only exception should be individuals who become handicapped during course of active duty, who should continue to receive regular monthly payments, they would have received, had they been in service till national age of superannuation.
The State must consider raising this Rs6Lakh annual tax exemption limit for all citizens, both retired and serving, to at least Rs9 Lakh per annum to meet inflation. This Tax Exemption limit of Rs9 Lakh must also be extended to all senior citizens and the poor who are not beneficiary of any pension scheme and have invested their life savings in National Saving Centre, to survive. In any case no pension should be given to any state employee who post-retirement is gainfully employed or rehabilitated in any SOE or Trust. This abuse must stop immediately and funds saved, be diverted on welfare of most deprived and on education and health. This colonial legacy of allotment of state lands to paid servants of the state, which British Raj did not offer to their own state employees in England, must cease and be rationalized. Upon reaching the age of superannuation, every state employee should be given a subsidized plot, not more than 250Sq yards or a maximum of 500Sq yards, on which he/she can build a house from savings, just like all other citizens.
Similarly, this Raj Legacy of allotting state land to politicians wiling to serve them and betray their motherland, such as Unionists of Punjab; Or giving them discretionary powers to allot such land to their cronies must cease immediately. This BP180Million scam is a consequence of this abuse by an elected public office holder. It is this practice which has created an environmental disaster in Pakistan. Similarly, this practice of state funded multiple camp offices for constitutional office holders must stop, when there exists President/ PM/ CM houses and state guest houses. Austerity must be seen to start from the top, before expecting masses to offer more sacrifices.
—The writer is contributing columnist, based in Lahore.
