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Thursday March 28, 2024

Tough decisions needed to fix economy

By Mansoor Ahmad
January 20, 2023

LAHORE: Pakistan survived over 100 percent devaluation of its economy in 1972 after separation of East Pakistan. Quality of life in 1972 was extremely high. The worst that could happen with right decisions is lowering our living standards to that level.

Without going into details as to who is responsible for our current trouble, the first priority must be to embark on the right path. At the moment we are not in a position to wriggle out of our problems on our own.

We need external help. We need to make prudent decisions. We cannot go on increasing the salaries and perks of our parliamentarians, bureaucrats and the army while leaving 90 percent of our population to bear the brunt of inflation, utility tariffs’ hike and acute shortages of essential commodities.

It has now become inevitable to accept the harshest IMF conditions to survive. The conditions would devastate the lower middle class, poor and poorest of the poor without impacting the elite class.

In the last 25 years, the bureaucrats, judiciary, army and the law enforcing agencies have been shielded from inflation by regular increase in their emoluments in line or at times much above the inflation.

The ordinary worker never enjoyed this privilege and suffered badly with every passing year since the start of this century. The salary raise of all bureaucrats above 17 grade and army officers in some years were higher than the minimum wage fixed for the year. In real terms, most high officials draw 10-20 times higher income than the minimum wage.

It would be fair if while imposing the conditions of IMF, the government announces a cut of 20 percent in the salaries and perks of all government officials in grade 18 and above, including the judiciary, and army.

They will also feel the pinch to a lower extent than the misery the ordinary people feel when they are asked to bear the hardships for the sake of their country. The cut in salaries and perks of the rulers and parliamentarians must be much higher. We all must sacrifice for this country and should not impose sacrifices on the ordinary citizens only.

Parliamentarians that draw perks and salaries from the exchequer must be bound to attend assembly sessions at least for four hours a day, failing which they should be denied their emoluments.

Ministers, chief ministers and the prime ministers must attend their office full time regularly. The outside duties must be performed after office time.

Ministers and chief executive of provinces and federation should be barred from visiting their home cities weekly on official expenses to save expenditures. The nation cannot afford to pay for their pleasure trips.

The free power and gas facilities for all officials and ruling elite must be withdrawn forthwith. We are a poor nation and its rulers, officials must not live like feudal lords. Their security must be minimised.

Those that fear for their life must curtail their movements. Luxury in the private sector must be over or heavily taxed so that the elite pay back some of their loot for common good.

The government must announce and implement these measures before accepting the harshest conditions of the IMF. There would be no large scale protests if the masses observe these anti elite measures being implemented in letter and spirit.