Concerns about the economy  

It is always heartening to learn that those heading various executive agencies are concerned about the country’s state of affairs. And thus, Chief of Army Staff General Qamar Javed Bajwa reflected concerns of all Pakistani citizens when he spoke about the macroeconomic situation at an event in Karachi.

But, the management of the economy falls neither within the domain of the Armed forces nor that of the forces’ parent ministry — Ministry of Defence. Therefore, the elaborate emphasis laid down by the COAS in his speech on the inter-relationship of various macro-economic indicators and specific policy instruments like taxation is rather unusual. The appropriate forum for expression of such concerns is the National Security Council headed by the Prime Minister.

With the COAS raising these concerns at a public event organised jointly by the Federal of Commerce and Industry of Karachi and the Inter-Services Public Relations, the impression many in the country already hold about the on-going tensions in the civil and military relations will only get strengthened. Many voices in the country have already pointed out to the gradual erosion of civilian authority in the recent weeks. We are sure that the COAS understands that such an impression is good neither for the country’s democracy nor for its economy.

A low tax base is an issue the country has faced from the day one. We remember that the very first federal budget passed by the government in the newly-formed country back in 1950s was a deficit budget. Then, as it is now, foreign aid had come to the rescue.

But over the years, the need for broadening of the country’s tax base has been raised time and again by economists, political activists, as well as relevant government functionaries. That no government has yet been successful in achieving that remains a cause for concern and needs greater introspection, followed by corrective measures overseen by relevant civilian authorities.

Since we know that the COAS also shares this concern with countless other Pakistanis, we hope that he will now take the lead and soon set an example for the civilian authorities by announcing a comprehensive review of taxation structures of corporate entities under the control of the Armed forces. We also hope that he will ensure that all details of this process are shared with the public to ensure transparency.

Finally, the Finance Ministry and the Planning Commission are the relevant civil authorities to speak about economic policy issues in a public setting. The event of the kind where the COAS expressed his rightful concerns needs to have representation from either of these two executive organs of the Pakistani state. It would be best if the organisers remain cognisant of this requirement in future.*