The writer is a child rights activist and development practitioner with a Masters in Human Rights from the London School of Economics. He tweets @amahmood72
Pakistan is a party to the UN Convention on the Rights of the Child (UNCRC), under which it is obliged to pass effective legislation to curtail tax evasion and to ensure well-equipped tax authorities. It is the international community’s obligation to ensure countries know who is evading taxes and how tax revenue is spent. The Convention stipulates that “ineffective taxation systems, corruption and mismanagement of government revenues can limit the resources available for the fulfilment of children’s rights … States should … implement effective laws and regulations to obtain and manage revenue flows from all sources, ensuring transparency, accountability and equity.”
This year marks the 25th anniversary of the UNCRC’s ratification by Pakistan — the first Muslim state and sixth country in the world to do so. The 25th anniversary provides a welcome reflection point to assess how successful we have been in upholding its principles. All reports show that child health, education, protection and participation is getting worse in the country. One of the major reasons is poor budgetary allocations for child rights. Progressive laws cannot be effectively implemented without monetary support. Article 25-A of the Constitution mandates the government to provide education to all children between five and 16 years of age. How can this requirement be fulfilled without monetary support? Similarly, if the National Education Policy 2009 commits to increase budgetary allocation for education to seven per cent of GDP by 2015 without any progress on this whatsoever, how can we expect to achieve our education targets? Currently, the budgetary allocation for education is 2.1 per cent of GDP, one of the lowest in the region. The reason for this is the tax-to-GDP ratio in Pakistan, which stands at 9.4 per cent, low even amongst developing countries.
While speaking at a seminar on the importance of education, the minister of state for education said that “the percentage of GDP spent on education is half of what it should be by international standards, but increasing the percentage is incredibly challenging in Pakistan”. In an interesting move, instead of increasing the tax-to-GDP ratio, the government is planning to make revisions in the National Education Policy and reduce the target of increase in education budget from seven per cent of GDP to four per cent of GDP as the former stipulation has been declared ‘irrational’.
We are also set to fail in achieving Millennium Development Goals of the reduction of the mortality rate of children under the age of five and reduction of maternal mortality. When a child is born, his or her chance of survival is increased significantly if there is a trained health worker present. In Pakistan, only around 50 per cent of births are attended by a trained birth attendant, according to Pakistan Demographic and Health Survey 2012-13. Malnutrition rates are high among women and children, and the coverage of front line health workers, like lady health workers (LHW), is limited and requires a considerable increase. What we see instead is LHWs running from pillar to post in order to get their salaries and often boycott their duties because of budgetary issues.
To be able to ensure the right to health and survival for all in Pakistan, the government is required to increase the budgetary allocation for health, which currently stands at a mere 0.6 per cent of GDP. This is despite claims by almost all political parties in their manifestos that they will raise the health budget to at least two per cent of GDP. One of the major causes of this failure is the lack of financial resources for the purpose. Again, funds obtained through taxation are the most sustainable source of finance for the kinds of services that will help children survive and thrive.
It is unfortunate that Pakistan’s ability to collect taxes has shown a decline or has been stagnant during the last decade because the tax-to-GDP ratio has never exceeded the 10.3 per cent level achieved back in 2002. We cannot keep shying away from our responsibility to improve the tax-to-GDP ratio as without doing this the government will not be able to spend on the social sector. It is important that the provinces also focus on increasing their revenues so that they can spend more on health, nutrition, education and child protection. For this purpose, the capacity of the tax collection system will also require a complete overhaul. To ensure the realisation of the rights of all, there is no option but to focus on increasing our revenues. Reformation of the tax structure should be our number one priority.
Published in The Express Tribune, September 3rd, 2015.
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Well done Arshad Sahib. Federal and Provincial govt must take some senior civil society activist on board while they proposing annual budget. State still unable to improve the indicators of Education & HealthRecommend
A well captured long standing issue … unfolding how impatient we are to sign international commitments …and unmoved when it comes to take concrete steps. We failed to achieve MDGs with no solid justification as countries who started off from the similar point have actually reached the targets while carrying the load of similar socio economic circumstances. Revenue generation remained a challenge in this country but rational spending does not exist at all I dont think we need any further mentioning. Child rights will not be focused until welfare comes on the priority national agenda. And why only government…. we the people of this country are equally to be blamed. Population control is one single intervention that …will change the numbers and fate of this nation.Recommend
The writer has accurately highlighted the ineffective taxation system of Pakistan and its adverse effects on already deteriorating child rights situation of the country. Although the basic needs of children has been well understood by the relevant stakeholders on different occasions, but ineffective implementation of desired laws and legislation has revealed their non-serious attitude towards the issue. Due consideration is required to increase the investment in social sector particularly for child basic rights of health, education and protection to secure the future of Pakistan. Because, if concerted efforts are not made to improve the social sector investments, it is apparent that the present situation of children may further deteriorate.Recommend
The writer has accurately highlighted the ineffective taxation system of Pakistan and its adverse effects on already deteriorating child rights situation of the country. Although the basic needs of children has been well understood by the relevant stakeholders on different occasions, but ineffective implementation of desired laws and legislation has revealed their non-serious attitude towards the issue.
It is already apparent that social indicators in Pakistan are very low and its ranking in Human Development Index (HDI) is lower than other countries that have even or lower per capita incomes. This situation needs immediate attention of those in power to effectively plan future strategy for enhanced expenditures on this sector. More importantly, due consideration is required to increase the investment for child basic rights of health, education and protection to secure the future of the country. Because, if concerted efforts are not made in this regard, it is obvious that the present situation of children may further deteriorate.Recommend
A wonderful piece indeed and I agree that taxation system in Pakistan should be improved generating money for the uplift of the much needed services however we also need to look at the out flow of funds which are non productive and have not contributed to increasing the revenue rather it has put strain on the economy of the country.
Our leadership needs to define boundaries and priorities only then we can move forward with addressing the root causes.Pakistan is paying 65% of the revenue that is generated in repaying the Debts which we don’t even know why they were acquired and what they contributed to?. Unless and untill we have a clear picture of the Debt situation, our sovereignty (if any) will be challenged, our governance will be guided by policies of International financial institutions.
Hence to arrive at the conclusion we need to demand the government
1. To establish a parliamentary debt audit commission, so that the truth about debts can be brought to the public.
2. Bridging the discrepancies in the taxation system to ensure increase in money collection.
3. Stop repayment of Odious Debts – which will increase the money in our kitty allowing us to fund the much needed sector.Recommend
Good writing indeed.
Every institution needs to be reorganized. Not only Health but ofcourse health is far more important but for our leaders nothing more important then money and elections.
We need honest people, I think just start training young students about honesty and hardworking, so they can play an important role in our society. Rather learning dishonesty and corruption they start new things and make our Pakistan better.Recommend
Have we really done any planning for this large population of our country? Considering the aftermath of lawlessness, violence frustration and denial of basic rights of health & education to which we have subjected our children, can we expect a better future for ourselves? Is it not time to confront realty?Recommend
None of the successive govt are prepared to tax themselves & the traders, the business community, the industrialists & the agriculturalists, feudals & waderas at large. So, the end conclusion increase indirect taxation. All those listed above also not interested in increasing spending in social sector, education & health. There are many reported instances where international grants running in billions ( note not loan ) for above mentioned sectors have lapsed due to non-utilization by the govt. This is because, it is conditioned that the funds must be properly accounted for the donors to check & audit. This discourages them, hence, let it lapse.Recommend
There has been an exceptional rise in violence and crime against children in the last few years. The children of today are not only endangered to injustice and discriminatory attitude, but are increasingly being found involved in unhealthy activities like substance abuse. The state of children in Pakistan thus presents a very dismal picture.
Therefore, there is a need to effectively build pressure on the federal and provincial governments by involving relevant stakeholders to push them into taking steps for improving the situation of children in the country.Recommend
In Pakistan tax collection administration is weak and heavily politicized. An independent body in true sense should be established to beef up capacity to collect the due revenues from respective sectors, organizations, businesses, and individuals. Tax exemptions/ tax burden needs to be immediately curtailed or eliminated at once. All the additional revenues generated from withdrawing the exemptions/ tax burden must be allocated towards the social sector in Pakistan.
Federal and provincial government should ensure that targeted for children within the social sector. Regional and group disparities, wherever these exist, must be considered while preparation of budgets. Recommend
Thought provoking, intriguing yet a bitter reality of a so-called progressive, socially active and politically vibrant society.
Arshad Mahmood intelligently put the facts, reality, perceptions and aspirations related to child rights in the existing plight of our nation.
This grave scenario of socio-political hazards, especially when as a nation, we have witnessed such massive incidents of violence & abuse (physical, sexual, psychological as well as emotional) against children, we need to come out of our comfort zone and should address this issue as one of our top priorities as a nation and declare Child Emergency, if not more than equal to security, power and financial emergency.
The echoes of one of the political slogans chanted in the last election often haunt me in this prevailing situation. It is indeed a WAKE-UP CALL for all of us
Ab nahi tu Kab?
Hum nahi tu Kaun?Recommend
Our government really does not know how to collect and spend the tax money.
http://www.thenews.com.pk/Todays-News-3-326817-Govt-slaps-5-percent-tax-on-foreign-education-fee
It is pre-assumed that everybody studying abroad belongs to upper class family. Upper class families have enough assets abroad and they need not to transfer their money for education through banks. This is simply discouraging education among working class families. Recommend
Pakistan Impractical Towards Child Rights
Pakistan is still lingering between declaring years and setting ambitions towards child rights. A number of packed enacted bills are awaiting proper budgetary allocation and others are depending on the meager resources moving neither upwards nor failing.
Year 2013 was declared as the “Year of Children” by the then Prime Minister, Mr. Parveiz Ashraf, and another similar move has been taken by Senator Raza Rabbani declaring year 2016 as year of children. All that happened in the year 2013 was just a mare announcement. No law related to children were passed in the NA and ones those were processed through the cabinet were passed on the very last session of the then assembly, which meant nothing more than a relapse because with the change of the government the bill could not get passed by the then senate body.
On the other hand instead of increasing the targeted budget for NEF, the less ambitious government now intends to decrease the targeted 7% allocation to 4% of the GDP.
Serious steps such as pooling resources from taxation, allocation of budget that must reach the child, enactment of pending laws and then their implementation to ensure child rights is need of the hour. Otherwise our children will offer their very own childhood to their children and tens of generations will witness their ancestor’s sufferings. Recommend
The writer has highlighted very important link between resources and rights.Uptill now both camps i.e Rights practitioners and economists living in separate ivory towers.While we call for taxation justice such as reducing indirect taxes and distributing the burden according to income and wealth ,so it equally applies to allocation of adequate resources for children which are legitimate rights holders as writer emphasised.But still artificial divisions of making Education as fundamental rights meaning superior courts can take cognizance of their violations and non realisations but leaving the right to health ,nutrition,food and water as principle of policy or basic right subject to adequate available resources .Recommend