Priorities of a poor state

LAHORE: The businessmen desire the government to announce measures that our finances cannot afford, while the general public wants relief in power rates when producing electricity is expensive. All segments of the society demand concession from the resource starved state.

Instead of trying to please all, the state must set its priorities right as presently the resource pie is too small to satisfy any segment. Our economy has reached where government servants now draw more than average income of the private sector workers.

The government is not only responsible for the government servants, but also for the rest of the population.

What steps have been taken by the state to ensure that private sector workers at least get the announced minimum wage (including domestic servants and those working retail shops)?

We cannot afford to award three bonuses to government servants as announced in Punjab when over 30 percent of the province’s population is homeless and starving after the recent floods.

It is callous to increase the salaries and perks of Punjab ministers when resources are needed for rehabilitation of the displaced population of almost 3 million.

When distributing subsidies, our rulers act like kings who can reward anyone without justification. Those rewarded not only include the extreme poor, but also the well-established industries.

Have we ever investigated the reason as to why our textile industry has lost its share in global trade despite regular concessions? Why has Bangladesh beaten us after entering the textile sector in early 1990?

The standard argument is that they were provided duty free market access by developed economies.

We were also awarded duty free access to the European Union in 2014.

Our exports have increased but not multiplied. Why are the textile and clothing exports of Vietnam more than double Pakistani textile and clothing exports? It entered the textile field hardly two decades back. Why is Cambodia surging ahead in textile exports and is likely to surpass Pakistan?

These questions should be probed to find out the mistakes we committed and are still committing in promoting a sector where

our global share has declined instead of increasing.

What is the sin of numerous industries active in exports that are denied power and gas subsidies? Most of our spinning industry operating on decades old spindles is a dead horse.

Why are we trying to drag this horse through whipping? Why can't we condition the subsidies with upgrades of technology? Why would they upgrade technology when concessions are granted unconditionally?

The government of Pakistan started the Benazir Income Support Programme in 2008. Has this programme made any dent in poverty in the last 14 years?

We are regularly increasing the size of the programme to include beneficiaries, but has this type of programme ever addressed poverty anywhere in the world? Why can we not divert these funds for conditional transfers?

It could be in the form of a ration for a family that enrols a girl in school with monthly attendance of 80 percent.

These funds could also be used to start a free milk programme for primary school children.

Had conditional transfers been initiated in 2008, there would have been vast progress in girl’s education and improvement in the health of youngsters.

The state should consider the welfare of the entire nation and not some segments of society or industry. There should be no increase in expenses other than health and education. The expenses in education and health must be audited every quarter by the private sector auditors.