Tahira Mansoor

Pakistan would have to depend on its own resources to develop its economy on a sustainable basis as foreign assistance is always attached to strings that create domestic unrest and nullifies the impact of foreign aid through internal strife.

Pakistan is caught in a bind as its national interests collide with the requirements of the lone superpower, the United States. Currently, the United States calls the shots at the IMF and World Bank on distribution of assistance to needy countries. It wields power in the European Union as well.

Our rulers should realize the gravity of the situation as foreign aid would now come on complete surrender only. Pakistan, no doubt, is a weaker state than the United States but then there are even weaker states like Sudan, Iran, Cuba and many others that have resisted the unjust demands of the US government successfully. Pakistan is a nuclear power and no sane country in the world would like to destabilize this country. They would exert full pressure but in the end would back away and come to a reasonable deal. Pakistan can still survive without foreign assistance provided we set our priorities right. Austerity from the highest level would pave the way for austerity at the lowest level. If there is load shedding in the country it should be equally shared by the president, prime minister, top bureaucrats and all those who enjoy high office. The austerity should be visible. The domestic consumers would accept long outages if the leaders face the same suffering. The energy thus spared should be provided to the industries so that the industrial wheels never stop.

Our rulers should act sensibly. There is no need to confront United States or NATO but at the same time we should be firm on principles and not succumb to unjust pressure. Our strategic importance is known to our so called allies and they would remain within their limit if we showed our resolve. Financial assistance is one tool that they currently have. If we showed them that we can survive without their assistance they would back away from unreasonable demands. We simply have to take some prudent steps at domestic level to ensure that the economy sails smoothly.

Our import bill is double than our exports. We need to curb all unnecessary imports particularly that of luxury goods. Slapping high duties is not the answer. Outright ban on luxurious items is the answer. Smuggling is not possible would the connivance government functionaries. This is a dangerous phenomenon because the smugglers besides bringing in consumable or durable goods also bring lethal weapons that create law and order fiasco in the country. The customs and the border security forces would have to tackle the problem of smuggling from this angle. It has to be stopped totally and at all cost. This measure would bring peace in the country besides providing immense relief to the domestic manufacturing sector.

Under invoicing could be curbed effectively by placing all invoices of the consignments to be cleared on an easily accessible website daily. The custom officers involved in duty evasion or under invoicing should be given exemplary punishment. Fair trade is possible only if all players have equal opportunities. The importer indulged in under invoicing denies level playing field to the honest traders and manufacturers.

It should be made mandatory all shuttered shops to display the national Tax Number in the shop. Moreover the tax officials should be authorized to ask for the tax return filled by each of these shopkeepers. To keep the element of corruption at bay the shopkeepers may display the actual tax return in their shop even if they paid zero tax. The civil society could then play its role if an affluent shopkeeper files zero tax or low tax return.

All exemption and SROs should be withdrawn. All incomes should be taxed equally. If a house owner is subjected to property tax a similar tax should be imposed on land. When a land owner leases his agricultural land to someone he earns similar profit as that earned by the house owner on his house rent. There would be a stiff resistance to such measures but if the high ups in the ruling elite abide by this rule honestly all others would be forced to follow.

The government should withdraw unlimited telephone, mobile and petrol facilities from all bureaucrats, ministers and advisors. The maximum limit for all types of phone calls should range from Rs. 1,000 to Rs. 4,000 per month, while the petrol expenses should not be more than Rs. 6,000-Rs. 12,000 per month. This measure alone would save the government over Rs. 5 billion.
Austerity at all levels would help save around Rs. 50 billion and exemptions would net in over Rs. 900 billion if effectively applied on all segments including capital market. Privatization of loss making state own entities even at zero value would save around Rs. 500 billion annually. The electricity subsidies and inefficiencies would continue for some time but could be reduced gradually in next four years through dedicated planning.

The United States asserted its hegemony when it succeeded is getting Rayman Davis released through arm twisting the heirs of the youths killed by the US operative in broad daylight. The US government was immune to the pleas of the entire Pakistani nation to release Dr. Afia Siddiqui. The US courts sentenced Dr. Fai on the ground that he was operating as the agent of Pakistani spy agency and pleading the cause of the people of Kashmir in the US. The United States is furious on jail term awarded to Dr. Afridi when it was proved that he was a CIA agent.

At the same time, United States showed its ruthlessness by massacring 24 Pakistani soldiers at Salala check posts despite the fact that Pakistani is a ally in fight against terrorism. It conducted unilateral raid on the compound of Osama bin Laden in Pakistani territory without informing the government of Pakistan. Despite this naked aggression it took back the debris of a high tech US helicopter destroyed during the raid as the Pakistan government complied with the demand.

-Cuttingedge