Between the devil and the deep blue sea

LAHORE: Our leadership lacks the same political will as exhibited by former Indian prime minister Narisma Rao in 1990’s who put at stake his government’s existence by instituting economic reforms that hurt the influential.

Taking monetary policy announcement by the central bank governor today in consideration, it seems the state machinery is confused and hesitates to take prudent decisions.

For instance, the State Bank of Pakistan has reduced the key policy rate by 75 basis points to 12.50 percent from 13.25 percent. This will definitely continue the downslide in economy that would be further boosted by coronavirus impact. The SBP governor was caught between the devil and the deep blue sea.

He had opted to fight the devil instead of outright drowning. But this is unlikely to stop the flight of hot money or stop downslide in the rupee value.

It has been established the majority of our businessmen are coward, as they make all-out efforts to protect their vested interests and seldom guide the government to improve economy.

The status quo is in their interest. They provide funds to small traders for street agitation when any government tries to introduce reforms starting with the documentation of the economy.

Reforms are all about documentation of the economy, full compliance with rules and regulations and no exceptions for any individual or sector. Our current rules mostly give special concessions to the ruling elite. The public, at large, for instance, faces law and order situation, but the president, prime minister, chief ministers, provincial governors, both federal and provincial ministers, advisers enjoy security squads wherever they move and they move with impunity.

Senior police officers have their own security squads starting from deputy superintendent of police to the inspector general of police. It is indeed ironic that those that are assigned the duty to protect the common man needs more security than the citizens of the country.

We all know that rich families’ employee private security guards and industries, shopping malls and even medium sized shops also keep their own security staff. Still, the incidences of dacoities are very frequent in markets and banks. The issue of phone snatching or depriving individuals of their belongings in broad daylight at roads and streets are also very common.

This is not all, there are many other exceptions enjoyed by many on the strength of their official status that other citizens have to acquire on payment of high duties.

For instance, the state pays for the salary and perks of the president, prime minister, chief justices; they enjoy fully paid top class conveyance; yet they are allowed to import one bullet proof car worth millions of rupees at zero duty.

All other citizens have to pay millions of rupees in duty and other levies. Why this facility has been provided on the basis of posts that are meant to serve the people? Reforms should have started from here.

Then there are some public sector loss-making companies where the employees enjoy the facilities that are provided to the public at high cost. Employees of the state-run Pakistan International Airlines enjoy the facility of free tickets, including international tickets, not only during service, but for lifetime after retirement. This facility is available to the spouse of the employee and his minor children, as well.

PIA is losing billions every month and this free service is adding to its debt burden. It is the same in Railways, which is also making colossal losses. Almost 10 percent to 15 percent of the seats in Railways are booked by its employees.

That means 10 percent to 15 percent lesser revenue. Yet another lucrative concession is availed by the employees and their family members of all power distribution companies not only during service, but also on a lifetime basis.

Democracy is all about transparency and fair play. Democracies fail if the countries do not manage their economies transparently. Fair play means equal opportunities to all. If the rules allow exemptions to certain sectors or individuals, then one can claim that the beneficiary has not violated any rule or law, and the law was implemented transparently. We will have to ensure that transparency is visible and equal for all.

Indians are not operating their economy with full transparency, but it is much fair than Pakistan. Moreover, individuals; however, high-ranked they may be do not enjoy duty concessions enjoyed by the top brass in Pakistan.

This was made possible by the then Indian finance minister Manmohan Singh, who while presenting the economic reforms package to Rao, warned him that this might topple his government, but extremely difficult decisions are absolutely essential for economic progress of India.

The reforms were approved and the coalition partners in Rao government left him and his government was toppled, but India started its march to glory.