‘Poor implementation main reason rendering best policies worthless’

LAHORE: Experts regret that individuals and trade bodies make presentations to the government based on secondary research suggesting policy changes on various issues without realising that poor implementation is the main issue that renders best policies worthless.
They said it is a folly to depend on the reports of creditable global institutions that are based on data collected around the world and rating given on the basis of better practices in different economies. They said to evaluate the shortcomings or advantages of a particular economy it was essential to carry out primary research that guides the researcher to suggest reforms all over, including those that strengthen the regulatory institutions.
Market analyst Dr Shahid Zia said Pakistan has one of the best environmental protection laws, but most of them are not implemented because the environmental protection agencies at federal and provincial level are very weak. “These agencies act on the whims of the ruling elite and avoid taking actions against violators of environmental laws,” he said, adding that recommendations on further improvement in laws would be useless until the regulatory agencies were strengthened, and regulators made accountable for their lax attitude.
He said power theft would continue unabated even with most stringent laws if the provincial governments refuse to provide security cover to the checking staff of power distribution companies.
“They will be scared away by the mobs when they try to remove the hooks that provide power cheaters direct connections,” he said, adding that similarly it would be impossible to cut power connections of those that default on their power bills. The power distribution companies do not have a security force of their own and depend on the cooperation of the provincial government. Still, he added rosy presentations are made based on secondary research to reduce power theft.
Financial analyst Amina Usman said that Pakistan needs true institutional reforms that grant regulators full autonomy. At the same time, after the grant of full autonomy, the regulators should be accountable for any lax regulation. She said in case of meaningful accountability the institutions would not obey illegal orders from any quarter.
She said in case of the Federal Board of Revenue (FBR) for instance, the tax collectors dare not raid traders and markets because the rulers forbid them to confront them. She said the key posts in the FBR were in the hands of the Ministry of Finance. Its chairman could be changed without any notice. He has to toe the line given to him by his minister, she said, adding that in lieu of this obedience, the tax collector is not accountable for their dubious decisions. She said it was a common practice in Pakistan that a ‘noncompliant’ taxpayer was subjected to extremely high taxation. This forces him to go for appeal, she said, adding that the fate of the appeal was decided in two to three years most of the time in favour of appellant.
Amina said the only relief that the appellant gets was that the unjust tax was waived.
The officer that levied the unjust tax goes scot free. She said in presentations on tax reforms, all types of suggestions are given, but none relates to strengthening of the institution based on accountability of those that violate law and impose undue taxes to get illegal gratification.
She said tax to GDP ratio would increase if all exemptions were withdrawn and tax collectors given a free hand with a real fear of accountability in case tax collectors gave any undue favour.
Market analyst Benish Toor appealed the private sector associations and researchers to start primary research on all aspects of governance in Pakistan and suggest real practical measures for improvement. All the countries that were on top in the ease of doing business index have robust institutions that operate without government pressure.
She said there would be no improvement in ease of doing business even if the government of Pakistan rewrites all it laws and brings them at par with the best in the world. She said strengthening and independence of regulatory institutions was essential to ensure the implementation of laws.