Austerity is a hoax, we believe in shelling out big money!

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Ishtiaq Ali Mehkri January 16, 2025
The writer is a senior journalist and analyst

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Pakistan is suffering from an economic downslide, and an inefficient revenue generation machinery is among the main reasons. This has made equitable governance almost an impossible task, furthering parochialism and disgust. Consecutive governments have tail-teased the officialdom to merely keep themselves afloat, which has resulted in widening the gap between the state and the people.

Disparity and discrimination is the new-normal for commoners in the realms of administration, judiciary and economy. At the same time the country is home to an abject elite capture. From the corridors of power to civil services and lower strata of desk-pushing, corruption rules the roost and the lectures of 'austerity' and 'sacrifices for a better tomorrow' are earmarked for the downtrodden and powerless.

At a time when the country faces a severe balance of payments crisis with international payouts of more than $24 billion staring in its face, the tax machinery struggling to meet the Rs13,500 billion target, IMF tranches being subjected to severe scrutiny, and PSDP being slashed to the core, the audacity of the FBR to issue a letter of intent for the acquisition of 1,010 new vehicles, with an estimated cost surpassing Rs6 billion, is unacceptable.

This speaks of a frame of mind in our ruling echelons who tend to swindle the national exchequer for their personal perks and privileges. A simple question is: what is the performance on which the FBR is priding? And is it working in relevance with the set standards of efficiency? A humble answer would be a 'no', with an honest assessment that it is one of the most corrupt departments, which has resisted structural reforms to this day by obstructing a shift to automation.

It has a plethora of deadwood workforce that believes in getting their palms greased. The incumbent FBR chief is on record saying that the "tax system only covers about 5 per cent of the population and is flawed". Moreover, he admits that there are not more than 6.7 lakh people in the tax net; the super-rich do not pay their full share; and the salaried class is included in the tax net because authorities fail to collect taxes from the affluent class.

With this state of affairs, it is altogether shocking to note that the Prime Minister endorses the waxing of tax officials with such an unfair deal of paying for their new cars, drive-away auxiliaries and petrol! Perhaps, the FBR is not alone in this. We as a nation are now accustomed to shortcuts and easy money. The government, electables, all cadres of bureaucracy - serving and retired – love to thrive on fringe benefits.

We spend billions on upkeeping august premises of Presidency, PM House, government offices as well as its inmates, unaware of the miseries of the common men, whereas, more than 50% of people go without access to hygienic sanitation, drinking water and shelter. It is no surprise that Pakistan is ranked 164th out of 193 countries on the UN Human Development Index. Ensuring two square meals with respect to the downtrodden has never been our motto.

It's time Pakistan has to choose a path of judicious lifestyle for itself. This hypocritic paradigm of governance has bred discontent. We sit at a foreign debt of more than $120 billion, with a debt-to-tax ratio above 70%, and destitution hovering over 50% of the populace. Likewise, by 2030, Pakistan is expected to accumulate an astonishing Rs49,629 billion in local debt.

The World Bank recently noted that due to "slow growth, high inflation and missed targets" 10 million more people are at the risk of descending into poverty. As a result, Pakistan's middle class is now part of the 'new poor' as inflation and unemployment skyrocket. To make it more horrifying, more than 70% of Pakistanis are unable to save money and are struggling to meet their expenses by cutting down on food, ignoring healthcare and pulling their wards out of school.

Should the state still go ahead with a culture of financial appeasement in the cloak of lagniappes to an already pampered class? No, it's a crime, per se.

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