Pakistan suffers from the apathy of its rulers. Political interests are superior to national interests. Politicians are stronger in rhetoric but weak in action. Pakistan is mired in multiple problems such as tax evasion, the energy crisis, terrorism and many others but worst is the lack of will to engage with all of them. An International Monetary Fund (IMF) mission held discussions with a team from Pakistan’s finance department from February 1 to 9, 2014 in Dubai over the Pakistan government’s economic performance. The IMF officials urged Islamabad towards decisive efforts to broaden the tax net through the elimination of tax exemptions and loopholes.
Interestingly, the IMF has conditioned the release of the next month $ 550 million tranche to Pakistan authorities to stick to its commitment of eliminating tax exemptions and concessions, which are responsible for an inequitable tax system.
According to the latest annual joint report prepared by the World Bank and International Finance Corporation (IFC), titled ‘Paying Taxes 2014 — report’, “Pakistan is amongst those where paying taxes is the hardest. The total tax rate stands at the lowest at 34.7 percent in Pakistan.” The tax payable is for over eight million people but less than two million people pay taxes. Tax evaders are identified but the government has no plan to act against them. It is the National Assembly of Pakistan that can formulate a committee or place stringent laws against tax evaders but, with the way only single lawmaker Asad Umar has been trying hard to present a motion in the National Assembly against tax theft, it seems the remaining legislators are not interested in addressing the serious issue of tax evasion right now.
Tax evasion is the main culprit behind the economic crisis and social issues of the country. Sadly, our rulers and lawmakers are experts only in making pledges on television channels but when the time comes to materialise these promises on the floor of the National Assembly and the provincial assemblies, they do nothing. It is clear that political interests are superior to general public interests in the country. One political party presented a resolution in the National Assembly for the reservation of four seats to disabled persons — one from each province — but it was rejected by other lawmakers.
Similarly, PPP Chairman Bilawal Bhutto Zardari is alone in the fight against illiteracy in Sindh. He is dismayed by the low literacy rate in his government’s province and has announced an educational emergency in Sindh to reform the education sector. This statement has been appreciated and welcomed by all but Wednesday’s baton charge and use of tear gas and water canons against the peacefully protesting male and female teachers of the teachers’ organisation, Sindh Professors and Lecturers Association (SPLA) has raised many questions about how and why the Sindh government and education department officials have been creating hurdles in Bilawal’s education emergency declaration. It is the teachers who can play an important role by joining hands with him to improve the falling standards of Sindh education.
We have the resources to resolve all issues facing Pakistan but we lack only will power when it comes to bettering the lot of the general public. The army chief, Raheel Sharif, even briefed the prime minister of Pakistan on how the army can clear North Waziristan within a four-week-long operation.
The Guardian newspaper published on December 23, 2013 that half of Pakistani assembly members pay no tax. Now, when our lawmakers are lawbreakers then why would anyone else obey laws and pay taxes? To be able to apply for a loan from the IMF, there needs to be a certain amount of dollars in the foreign reserves in the central bank of an applicant country. When Pakistan applied for an IMF loan of $ 6.7 billion last year, its central bank, the State Bank of Pakistan, had less than the required dollars as the foreign reserves and thus had to borrow dollars from the commercial and other banks to meet the IMF loan pre-condition.
Our nation can be deceived by pseudo slogans for economic development and social change but the world community is well aware of such old and repeated tactics. It is the low literacy rate that runs the jugular vein of deceitful politics in Pakistan but if Pakistan has to survive on the world map, it will have to genuinely struggle hard to overcome the crisis in an earnest manner. Pakistan stands at the most critical junction in its history. It lags behind in terms of peace, economy, education and healthcare. Politicians need to act and demonstrate that will and the power to exercise it is not dead.
The writer is a blogger and a freelance columnist
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