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Friday March 29, 2024

Compromised measures harm economy, government

By Mansoor Ahmad
November 20, 2018

LAHORE: Economy does not flourish in societies with a government that does not ensure good governance and compliance with the laws and regulation. The satisfactory law and order situation that indicates state control is misleading, as it is due to compromises made by the state.

The state dare not raid markets to confiscate smuggled goods, as it fears a backlash from traders that would be difficult to control. It cannot take action against some religious groups that openly challenge the authority of state institutions and judiciary.

Action against polluting rickshaws results in closure of roads. We have effectively controlled the terrorists, but have failed to discipline the public. We collect taxes indirectly from the poor, but are soft on known tax evaders. We have not even been able to reduce corruption that is increasing with every passing day. A government having full control over state affairs would never tolerate any of the above violations of law.

How can we expect to accelerate growth if the state is helpless against religious extremists and influential thugs? The government says that the war on terror has caused colossal loss to the economy.

Is the annual loss of around $10 billion caused by the public sector companies due to terrorism? Does the loss caused by tax evaders and smugglers come under terrorism. Does the state think that those who indulge in under-invoicing and under filing of production are patriots?

We are surrounded by hostile states that have their work tailor cut to suit their designs because the society is indifferent. We have somehow lost our national identity. What we observe all around is as bad as terrorism. The terrorists destroy live and property. The absentee or indifferent doctors at hospital and clinics are responsible for many deaths that are caused due to their negligence.

The rampant corruption in the country still dents economy more than the damage caused by terror attacks. What we fail to realise is that the government has to exert its writ on economic affairs as well. The rampant tax evasion in the country is indicative of the fact that successive governments in Pakistan abdicated their right to collect fair revenues and paved way for sustained increase in inequality.

The smuggling, under-invoicing and wrong declaration of goods has become a norm in our trading system because the custom officers and other agencies with no fear of accountability find it convenient and lucrative to cooperate in these unlawful activities.

Our rulers are afraid of the shutter power of the 1.8 million shopkeepers and instead of documenting the trade are content with whatever tax returns they file. In fact, even those shopkeepers are spared that avoid the tax net.

As a result, the tax to GDP ratio has declined to 8.8 percent from 13.3 percent a decade back. The governments that shy away from their responsibilities cannot be expected to boost the economy.

Social injustice and economic deprivation breeds discontent that might have in some cases led to terrorism. All sensible governments ensure that at least food is available to the common man at affordable rates because a hungry man is more dangerous than any diehard criminal.

However, when hoarding of all food items like wheat, rice, potato, onion, garlic and ginger is tolerated by the state, food prices are then determined by hoarders which of course are out of reach of a large section of the society. All this is happening in Pakistan.

It is painful that all our neighbours are gradually moving ahead. They are not corruption free. Smuggling and other malpractices do exist in their countries as well, but at very low level.

The corrupt have been frequently punished in our neighbouring countries and smugglers are regularly taken to task. These menaces are declining with time.

We have been tolerating all kinds of malpractices that destroy our social fabric as well as the economy. The ever increasing inequalities do not bother us. We respect people on the basis of their wealth status and not on their moral character.

What we do not tolerate is the religious belief or political differences. The economic deprivation of a large segment of society has brought us to this stage. Sustained economic growth is possible under a government that has the courage and determination to establish its writ on fair implementation of law, rules and regulation on all segments of society irrespective of their wealth status. All law breakers are enemies of Pakistan and there should be zero tolerance for all law breakers whether normal criminals, terrorists or those breaking economic rules and laws.