Beyond the budget

As PM Imran Khan’s government navigates through the turbulence caused by the budget and the financial difficulties it has inherited, it should also focus on fulfilling the promises of improved governance; prosperity to the masses; and the ‘Madina ki Riyasat’ model which is based on egalitarianism, social justice and accountability. It should not suffer from the elite capture and repeat the failed practices of the past governments. In order to succeed in this regard, it should look beyond the budget and identify opportunities for growth.

First and foremost, the government should find innovative means to develop human resource. With 50% of the population under the age of 25, and 25 million out-of-school children, the neglect suffered by our younger generation is nothing short of a calamity. Just like the billion-tree initiative, PM Khan should launch a war on illiteracy. It can be financed by taxing property in urban areas and large agricultural landholdings. Monitoring the education sector’s performance and increasing public-private participation can improve governance. Special attention should be given to vocational and technical training to support our industrial growth. Internet, satellite access, solar energy and smart phones can be leveraged to provide access to online lessons to the remotest areas at a minimum cost.

On the economic front, the government should unlock the potential of the cities. The 18^th Amendment needs to be taken to its logical conclusion and cities should be politically and financially empowered with the right to levy taxes, raise finances and expenditure. Cities have historically played a pivotal role in economic growth, political development and the enlightenment of the masses. With the right input, Karachi can be like Shanghai and Lahore, or another Bangalore. Empowered cities also become excellent nurseries for incubating future political leaders and Erdogan is a good example of this.

We should also work to capitalise on our agricultural potential and strategic proximity to food-deficient markets of Iran and the Gulf states. Pakistan has been blessed with rich soil, four seasons, plentiful water and hardworking farmers. Despite this, we suffer from low yields, high spoilage, poor grading and low market access. We need to move from mere self-sufficiency to producing exportable surplus of value-added and branded products; and a coordinated effort between farmers, local government and the private sector is needed to achieve this.

Another area requiring urgent attention is the computerisation of government offices. Most offices still use paper files and while the modern world is paperless, we are ‘IT-less’! The government has finally taken some steps to regulate and tax the real estate black hole. Investments in real estate had reduced liquidity by pumping capital into a largely non-productive sector, at the cost of productive industrial and commercial investments. One hopes this trend will continue and the exemptions currently in place will be removed in the future. Furthermore, the government needs to regulate this sector by licensing, imposing reporting requirements, and financial and title safeguards to prevent small investors from being cheated — a problem of scandalous proportions.

While the government has expressed its intention to expand the tax net and use technology to cut down on evasion, it still heavily relies on indirect taxation, which weighs most heavily on the poor. A lot of the exemptions and loopholes which benefit the elite and the landed class remain intact. We must have the courage and the will to pursue a more equitable policy.

Lastly, in order to improve governance, effectively deliver on policies and reduce corruption, an empowered civil service is essential.

Published in The Express Tribune, July 3^rd, 2019.

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