Daily Times

The world has witnessed indescribable scenes of ruthlessness twice during the last century. These were the World Wars which concluded great havoc. Great Britain scattered into pieces. Germany and Japan lost their economic stability. The natives of these countries did everything to protect their sovereignty later on. These were the economic virtues – honesty, responsibility, accountability and diligence- that put these countries back to their feet. Today, Germans are paying 40 percent progressive income tax for taking their country forward, and Japan’s economy has become unbeatable.

Before the American Revolutionary War broke out during eighteenth century, the Americans demonstrated the highest level of their mainstream economic sentiments by manufacturing boats and fabricating uniforms for their army and stopped relying on British products. It was all about a sense of self-reliance that integrated them to stand on the same page. They tried their best to reduce liabilities of the nation, for it was their top obligation to maintain their national autonomy.

Under the Tea Act 1773,the British government imposed several duties on its occupied American colonies for the tea traded by the British East India Company; the objective was to take the sinking company out of financial breakdown. In response, American women boycotted the consumption of tea as they were unwilling to compromise their economic virtue of avoiding unnecessary consumption over mere kitchen flavours.

There are numerous examples from People’s Republic of China, when the Chinese showed higher economic virtues by reducing pointless consumption of cotton, sugar and many other products through times of economic crisis.

It is high time to instill a sense of self-accountability by controlling the behaviors associated with corruption, tax evasion and mishandling of domestic assets in the country

Economic virtues call for paying taxes, protecting state assets, loving resources, demonstrating fairness in dealing, respecting the price regulators, earning white money, and refraining from hoarding, adulteration and other corrupt indulgences. Earning more and spending less gives rise to savings for future investments, but earning less and spending more buries the nations under loads of debt. Being under debt for a longer period of time is the sour fruit of going away from practising economic ethics.

In progressed countries, taxes are considered to be as sure as death. It is right of the state to collect taxes from its subjects. It is responsibility of subjects to pay taxes in good faith. But, again Pakistanis as a nation lacks this sense of responsibility. Tax evasion is prevalent and is never considered as a crime for many.

Today, Pakistan is in deep waters due to surging economic crisis. Fiscal deficits, inflation and tightened monetary policies are problems of the day. The root cause of these issues lies in tax evasion, corruption, black marketing and manipulation of currency rates. Country’s economic decline is an evident result of departing from economic virtues.

When dollar is appreciated in comparison to rupee, many Pakistanis tend to stockpile dollars, thinking of gaining the higher return in future. Putting the national economic obligations aside, this move of people results in further depreciation of rupee by raising the demand for dollar, which puts huge burden on national exchequer, thus, further weakening the rupee.

Businesses in the country lack economic egalitarianism that requires equal access to wealth and opportunities for all. The effective population of the country is enforced to work for minimum compensation. This has not only led to lower productivity and efficiency but also to significant fall in invention and innovation. This is why Pakistan’s export goods lose quality and fail in competing in international market, giving rise to current account deficit.

Pakistan’s masses are more prone to consumption rather than being investment oriented. Country’s GDP gives a glamorous picture of continuous growth at more than 5 percent but in reality this growth is fictitious. It is the level of consumption that shows a magnified growth rate; the growth attained by expending more on consumption is useless.

Being responsible, the people of Pakistan could control their Veblen behaviour in consumption patterns and focus at accumulation of investments that could boost economic development by encouraging growth, productivity and employability.

The natives of Pakistan, as a nation, could strive for attaining unity and integration upon common national issues. The present government’s orderly intention and methodical efforts to eradicate corruption are praise worthy. But much is required to fix ‘personal economic disorders’. Structured legislation could revive the rule of law. The religious scholars could reprimand the public for economic malpractices. Being ambassadors for economic change, famous sportsmen, celebrities and social figures could play their voluntary role.

It is high time to instill a sense of self-accountability by controlling the behaviours associated with corruption, tax evasion and mishandling of domestic assets in the country. Economic bankruptcy has already cost Pakistan heavily and the economy is no more in position of bearing the burden of unethical economic activities.

The writer is a freelancer and researcher, journalist