The question often asked in elite circles is why everyone is so angry all the time, referring to the poor, of course. I’ll tell you why. It’s because of the total insensitivity of the prosperous to their plight; not just theirs but also the plight of the country. There is a serious economic situation, a cutback on development expenditure, a reigning-in on defense expenditure and rampant unrest owing to load-shedding and rising costs. One would imagine that the elite would rise to the occasion and offer the inevitable sacrifice. But no!
What we do hear, very loudly, is a cry for subsidies to the already very rich industry, a rollback of the proposed GST on agricultural produce and the intended benign neglect of collecting tax on agricultural income by the provinces. The lobbies advocating this are the feudal lords and industrialists consisting of those who are probably among the list of 700,000 known tax evaders. In a country that has a clamoring need of revenue and where the tax to GDP ratio is irrationally amongst the lowest, it’s a crying shame.
One must doff one’s cap to the finance minister. In his winding-up speech Dr Shaikh has castigated the affluent classes, his peers in parliament, and suggested bluntly that the onus to pay their dues rests with them and they should set an example for the rest of the country. Even during his first budget speech in 2010 he had shamed the members of parliament for their insensitivity towards their obligations and the rights of the state.
It is paramount that the minister sticks to his guns with regard to proposed taxes and it is imperative that he is fully supported by the pillars of the state. The President must stand firmly behind the genuine efforts to raise revenue and thwart the pressure groups that will incessantly pursue him to yield to their demands. This battle must be adequately resolved in favor of the country. This is what the people expect.
Economic reforms and a vibrant growth policy, both mid and long-term, is of utmost essence if Pakistan is to stop reeling and roving on an unstable access. Dr Hafeez Shaikh has to lead the way to withstand political pressures and help create the political will to take much needed decisions. Politicians are here to serve the people and that is what they must be guided towards. A fact that is completely alien to Pakistani politics.
Today we are confronted with a political situation that has literally no agenda beyond self-projection and preservation. The opposition offers no alternatives except empty rhetoric. Who believes for a moment that things would be any different if there was a change? The only change would be that a certain other group would reap the benefits of office. Haven’t we had enough of that?
With elections due in under two years, in the normal course governments would lean towards providing benefits to the people without taking due cognizance of economic norms. Perhaps this time, the finance minister may be able to persuade the leadership to accept the formulation of a revolutionary economic policy that would yield positive results and greater benefits over a slightly longer period. The nation needs to be explained the benefits of the sacrifice they will be asked to make in favor of a better future.
Government needs to take the press along and develop a new information system. A graphic display of the benefits accruing with the change needs to be presented with transparency and complete clarity. The lack of quality information is the cause of much unrest and this issue is not being addressed sadly. Take the RGST campaign for example. It is an abject lesson in how not to propose change.
In building this info network, the political leadership will need to fight the bureaucracy, which is complacent and comfortable with the current PID. They are ready to buy and attempt, disastrously, to sell the crap that the bureaucrats throw at them. A smart spokesman would question the intent if he or she were handed something that would not sell to the press. Remember, today’s press is not gullible. They are ready to eat the weak alive. It’s time this fact is recognised and a high quality spokesman is appointed.
The finance minister must monkey wrench the existing system if success is desired. Certain pressure groups have taken Pakistan for a ride for far too long. Stabilising the economy will lead to political stability and hopefully help build a new breed of politicians. If not that, at least create new ideals and norms that will put country first.
Applying the monkey wrench is never pleasant, especially if a system has stagnated forever. But if it serves national interests, it becomes absolutely vital. Men of history have always engaged in tough battles and their legacy has been in the success of their campaigns. This is Pakistan’s Waterloo and the national leadership must rise to the occasion.
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