All in the name of democracy
These appalling scenes only refreshed memories of late 1970s when a martial law regime had set a new trend of political victimisation. The same scenes were repeated in the early 1990s when the Punjab government led by the then Chief Minister Nawaz Sharif resorted to torture of PPP workers led by former PM Benazir Bhutto
Sad scenes were witnessed in the E-11 sector of the federal capital late on 27 October. Young workers of Pakistan Tehreek-e-Insaf (PTI) being beaten up and dragged towards prison vans by Islamabad police and paramilitary forces. And the sole crime of the young political activists was that they had amassed to demand accountability for some powerful elites named in the Panama leaks.
The police and paramilitary forces from across the country had been collected to prevent the youth from demanding accountability of PM Nawaz Sharif and his family, who are named in Panamagate.
Though the political activists were unarmed and had only assembled to strategise for the 2 November agitation, not only were male workers beaten but even young girls were physically assaulted and bundled into police vans. And this all happened in the name of “saving democracy”.
These appalling scenes only refreshed memories of late 1970s when a martial law regime had set a new trend of political victimisation. The same scenes were repeated in the early 1990s when the Punjab government led by the then Chief Minister Nawaz Sharif resorted to torture of PPP workers led by former PM Benazir Bhutto.
The use of brute police force against political opponents has traces in the history of Sikh rule in Punjab and Jammu and Kashmir in late eighteenth century. The rule of the Pakistan Muslim League-Nawaz (PML-N) carries many similarities with the “Sikha Shahi”, which started in 1799 when Ranjit Singh captured Lahore and founded Sikh rule in India.
After seizing control of Jammu and Kashmir, Maharaja Ranjit Singh appointed Gulab Dogra as the Hindu governor of Jammu and Kashmir. At its peak in the 19th century, the Empire extended from the Khyber Pass in the west to western Tibet in the east, and from Mithankot in the south to Kashmir in the north.
Under the Sikh regime, the Muslims in India, who formed around 70 percent of the population, faced the worst sort of religious and economic persecution. The regime imposed record taxes, confiscated lands owned by Muslims and hence economically cornered the Muslims. The suppression was not limited to economic terms and it also included religious curbs.
Gulab Dogra demolished the Jamia Masjid of Srinagar. In 1837, Dogra suppressed the revolt of the Yousafzai Tribe. Thousands of Muslim Pashtun tribe members were killed. A few hundred captured women were sold as slaves in Jammu.
After acquiring Jammu and Kashmir through the Treaty of Lahore and Treaty of Kashmir, Ranbir Dogra led a major invasion of the frontier areas of Yasin and Hunza to punish Muslim rebels in 1863. For all these reasons, Muslims of India remembered the Sikh rule as “Sikha Shahi”.
Fast forward to year 2016, Prime Minister Nawaz Sharif and his younger brother’s government in Punjab have made life miserable for the people at large due to rising inflation. Unprecedented and heavy taxation policy has been introduced, making lives of the inflation-hit people miserable.
The tax regime introduced by Finance Minister Senator Ishaq Dar is heavily tilted to favour the elite classes while the people belonging to the middle and lower classes are the major sufferers. The poor have been snatched their right to food though.
Pakistan’s corporate tax rate is the third highest in the world. On her recent trip to Islamabad, the chief of the International Monetary Fund (IMF) has advised Pakistan to tackle the menace of ‘real or perceived corruption’ – particularly in light of the Panama and Bahamas leaks – by bringing facts to the table in a transparent manner.
Lagarde gave an unambiguous message on tackling “real or perceived corruption, or both.” She urged Pakistani authorities to take the issue head on, as some young Pakistanis have started believing they can buy everything with money.
The board may comprise eminent economists, professionals and other stakeholders. In order to create a link between the board and the FBR, its chairman could be a member of both the bodies to ensure interconnectivity and ownership of the policy decision
However, the government has no plans to hold those accountable whose names have emerged in Panama and Bahama leaks. It is not a surprise for many that none of those politicians and bureaucrats who, despite belonging to a country known for being poor, have allegedly stashed billions of dollars of black money in safe heavens and offshore accounts abroad.
The inaction against around one thousand individuals mentioned in both the leaks is mainly just to save the skin of Prime Minister Nawaz Sharif, Chief Minister Punjab Shahbaz Sharif and their close relatives and family members.
One can understand that those at the helm of affairs would try to secure their family and personal interests. However, the irony of the situation is that none of the state institutions are ready to move a single inch against those accused of stashing billions in stolen state money abroad.
Whether it is NAB, FBR or even FIA — all are keeping mum. These dead institutions reflect how compromised a bureaucracy we have.
The people of Pakistan are fast losing faith in state institutions. Lack of accountability for the elite and strict laws for the common public gives impetus to dissent and uprising against the government.
The lockdown Islamabad announcement by PTI Chairman Imran Khan was reflective of the same. Khan, despite his weaknesses as a politician, has made some major breakthroughs politically since his Raiwind march.
The use of brute force by federal and Punjab governments against the peaceful youth of PTI has reflected how far this regime can go to protect the corruption of the ruling family and the political elite.
The way the police and FC were (mis)used to gag and confiscate the voices of dissent, and call for accountability, I fear that Pakistan could turn back towards the era of 1990s when the then Chief Minister Punjab Nawaz Sharif had unleashed police force against the then elected prime minister of the country.
But the major concern for me is the way the media houses have fallen in line with the federal government to demonise Imran Khan and other opposition leaders.
Traditionally, the media would always stand by the opposition parties to help hold the government accountable and to ensure public interest. However, with the times changing, the media owners have become hungry for public advertisements and now almost all media houses look extremely active to rescue the prime minister and his family, which is tragic to say the least.
In such a situation, the Supreme Court is the only hope and the entire nation is looking at it for ensuring accountability of the elite.
If the Supreme Court also fails to hold the ruling family accountable, the already fragile trust of the common public in the state may weaken further. This can lead towards rise of religious and ethnic extremism as forces are already active to lure the largely hopeless and jobless youth towards militancy and insurgency.
The extremist religious and ethnic groups are already active in backward and under developed areas of South Punjab, Balochistan, Khyber Pakhtunkhwa and Sindh where religious, sectarian and nationalist forces are active.
The unemployed and frustrated youth are easy prey for these elements who are being funded and armed by enemy states.
An immediate and effective accountability of the ruling elite would not only help revive public trust in the state machinery but would also lead towards restructuring of the flawed systems from taxation to revenue collection and help broadening the tax net.
The tax regime is pro-elite which needs to be reformed immediately, introducing taxing the elites and providing relief to the common people. There is a need for setting up of a national tax agency besides stripping the Federal Board of Revenue (FBR) of its policymaking role.
Despite efforts for reforms in the past 15 years, the FBR has not been able to make any headway and the collection stood at an even worse level than in 2000 in terms of tax-to-GDP ratio.
There is an immediate need to bring structural changes in the FBR over the short term and set up the national tax agency in the long run.
While the poor are subjected to heavy and harsh indirect taxation, the elite of the country is enjoying free perquisites and benefits, including purchase of valuable state-owned plots at prime locations and at throwaway prices.
The government needs to withdraw tax exemptions for residences of the president, governors and chiefs of staff. The perquisites of governors of provinces, chiefs of staff and corps commanders, federal ministers and residences of judges and their allowances should also be subject to tax.
The federal government boasts of withdrawing Rs208 billion worth of tax concessions in the last two budgets. However, almost all of these concessions were indirect and the government has so far protected the benefits enjoyed by the elite in the shape of exemption from income tax.
There can be no improvement in tax collection at the national and provincial levels unless fundamental administrative reforms are introduced. A fully automated, professional and efficient national tax agency would alone be in a position to improve capacity by detecting tax avoidance and evasion through the tax intelligence system.
At present, the FBR is collecting 95pc of taxes by imposing more and more obligations on organisations and individuals in the form of withholding tax provisions.
There is a need for establishment of an independent tax policy board in the short term under the auspices of the ministry of finance with the prime objective of debating and formulating the national tax policy in consultation with the stakeholders on a continuing basis.
The board may comprise eminent economists, professionals and other stakeholders. In order to create a link between the board and the FBR, its chairman could be a member of both the bodies to ensure interconnectivity and ownership of the policy decision.
The tax system is marred by evasion, under-reporting, tax fraud, corruption, smuggling and under-invoicing to name a few. This inequity is also hitting hard the compliant taxpayers. Until and unless fundamental reforms are put in place, the government would have no option but to levy heavy taxation over the taxpayers while tax evaders would keep fooling the system until it eventually chokes due to over taxing and lack of space.