LAHORE: Pakistan’s economy needs a national solidarity like the one our society, businesses, and politicians shown in wake of Indian aggression. A national economic agenda duly approved by the parliament is the need of the hour.
Pakistani economy has remained fragile because successive governments dared not have the political will for the fear of losing public support in the wake of unpopular economy boosting measures. This situation would not change until all political parties are on the same economic agenda based on national interest.
They showed this solidarity in case of Indian aggression. They must now realise that having seen the preparedness and professionalism of Pakistani armed forces the Indians would think too many times before pressing on with their jingoism.
But our civil society, politicians and businessmen must realise the economy would be the next front that India would open. On the war front India knows that it cannot unilaterally hurt Pakistan without being paid back in same coin or perhaps more.
But as far as economy is concerned India can afford to lose a few billion dollars to deny Pakistan global markets. Our economic woes are of our own making as we deviated from the prudent path of promoting formal economy by keeping our eyes shut on corrupt practices that promoted informality. The nation needs a united stand on all malpractices that have plagued our economy.
Indian economy in early 80,s was more informal than ours. They gradually tightened the screw on informal sectors with the result that the formal economy is now stronger that the informal sector.
As far as corruption is concerned it is at almost the same level as in Pakistan (though slightly better). But the level of financial corruption in India is very low. Tax-evaders are accountable, regulatory authorities ensure that smuggled items are not sold in market.
If smuggled items are found anywhere they are confiscated and the person involved is persecuted. Tax officials have the authority to conducts raids even in residences if they suspect that unaccounted for wealth is stashed there.
The regulators are extremely harsh on violation of regulations. Still there are tax thieves and smugglers but their number is very low.
In Pakistan the smuggled goods are sold openly. Smugglers carry on their operations without fear of law for they pay protection money to the lawmen. Raiding the shops selling smuggled goods is impossible.
The traders call it an intrusion that would ‘spoil’ the business environment. All types of items can be easily smuggled into the country. That includes tyres of all sizes (mostly bus and truck tyres. Even luxury vehicles can be smuggled. The PPP government in fact had to announce amnesty for regularising smuggled cars.
India also faced the menace of power theft at about the same time when it started in Pakistan; however they have since controlled it with much success, moreover the magnitude of theft never reached the level that prevalent in our country.
Controlling power theft and smuggling required strong political commitment. The culprits are on both sides of political divide. These corrupt practices are hollowing out the economy like termites.
Nations have risen from ashes and our economy is indeed at a very precarious stage. We do not need foreign aid or foreign advice. We have to simply put our house in order. By indulging in malpractices we are being our own enemies. The nation needs unity.
We thwarted Indian designs on the strength of national unity. We must understand that this victory would go in vain if we do not show same unity in economic affairs.
The nation should realise that India’s actual target was our economy. They were constantly weakening it by keeping our forces regularly engaged at the line of control in Kashmir. The sporadic violation of ceasefire bled our resources.
We should act immediately to design a prudent economic policy owned by politicians across the board. The policy should ensure an end to all malpractices ensuring implementation of rules and regulations that the elite has been avoiding so far.
