Search for identity

LAHORE: A strong and transparently managed economy is key to peace, harmony and prosperity. Economic progress is only possible under a responsible government that takes decisions on merit instead of political influence and is accountable for all its actions.

In our case, there are many grey areas in our economy, including the absence of transparency in economic affairs. The government by and large is not accountable to the electorate, and this encourages it to make appointments without any merit.

We have been tolerating all kinds of malpractices that have destroyed our social fabric and our economy. The ever-increasing inequalities do not bother us. We respect people on the basis of their wealth, not their moral character. We do not tolerate people’s different religious beliefs or political differences.

The economic deprivation of a large segment of society has brought us to this current deplorable stage.There is a major policy flaw in the approach towards inclusive growth, as instead of devising policies and programmes that create sustainable jobs, our planners try to protect jobs through protection, subsidies or social welfare programmes.

Each of these actions results in inefficiency, lethargy and low-value addition. The rule of thumb in Pakistan is that if you establish an industry, then you are qualified to get duty protection for the import of several items.

There is no rule to evaluate the capacity or quality of the local product. The result is that those who want to produce quality products have to import them after paying protective duty, which increases their cost. They may be able to market that product in Pakistan, but they cannot compete in the global market.

Smuggling, underinvoicing and wrong declaration of goods have become the norm in our trading system because some customs officers and others from different agencies, with no fear of accountability, find it convenient and lucrative to cooperate in these unlawful activities.

All this increases the misery of the deprived segments of the population.Another factor that we have long neglected is that of creating inclusive markets that could ensure inclusive growth. The amount that our governments spend on protectionism, subsidies and dole-outs should be diverted towards skill development and education.

An economy where there is an abundance of a skilled labour force automatically becomes an inclusive market. East Asian economies have moved forward on the strength of skill and education.

In corrupt societies like Pakistan, the prospect of riches diverts official efforts to seizing a larger share of the pie, rather than creating a larger pie, which creates a tussle in society to grab wealth, which leads to conflict.

This is the reason that we find non-cooperation between politicians; unhealthy competition between manufacturers; and unethical imports that do not benefit the importers but are a boon for officials that get their share from all importers. The nation is in destructive mode.

Pakistanis are wondering about their actual identity. What they observe all around is as bad as terrorism. Terrorists destroy lives and property; absentee or indifferent doctors at hospitals and clinics are responsible for many deaths that are caused due to their negligence; and rampant corruption in the country still dents the economy more than the damage caused by terror attacks. Insensitive rulers who live in luxury look like aliens to ordinary Pakistanis.