UK asks Pakistani elite to sign social contract with its people

LONDON: The Chair of the House of Commons’ International Development Committee says the British public may rise against economic assistance to Pakistan if the elite don’t come to senses and continue to evade taxes and encourage corrupt practices.
Speaking to The News here after releasing its report to the media and public in which the powerful committee recommended halt to the planned rise in aid to Pakistan, Sir Malcolm Bruce said he wanted the people in Pakistan to know that those calling for reforms of Pakistan’s tax system are the “friends of Pakistani people”.
He agreed he was aware that his views may not be liked by the corrupt elite but he stressed that the committee had done the right thing by speaking for a strong and progressive Pakistan after having seen “no evidence” in the last few years that there was any movement towards serious tax reforms and didn’t notice the wealthy taking any responsibility by stopping to cheat and plunder the country. The contents of the report calling on Pakistan to increase its tax base or face no increase in aid dominated headlines in Britain all day on Thursday.
Britain plans to increase its bilateral programme in Pakistan from £267 million in 2012–13 to £446 million in 2014–15, making Pakistan the largest recipient of UK aid.
He said the people of Pakistan should know that the “Pakistani rich class who don’t pay taxes at all are wealthier than British citizens, including British Pakistanis”. He said the report was offering a deal stating that Pakistan was important to the world but there should be a commitment about improving education and health standards and tackling poverty.
“If the British public have a commitment towards Pakistan then Pakistan’s rulers and other wealthy people should have a similar commitment too. We have to work together to deliver results. If we are to increase our contribution then the tax base should increase at the same time. Pakistani leaders will have to show that they are serious for this partnership.”
Sir Bruce said it’s not the wealthy in Pakistan who are cheaters. Equally, he said, Britain’s elite as well as rich people everywhere else in the world try to hide their wealth and dodge paying taxes but what’s happening in Pakistan is beyond any comparison. “We have a heated debate in this country about this social contract as who pays less or more. Some rich people do avoid paying taxes but we come down on them like a ton of bricks but the vast majority of our people pay taxes and they don’t find it easy to avoid.”
He said Pakistan’s wealthy class don’t seem to have any respect for the concept of social contract and justice. He said Britain has partners in the federal and provincial governments who recognise that teachers can be appointed on merit, that there should be schools and kids should study there. He said it was a good sign but stakeholders of all persuasions should recognise there needs to be partnership and every side needs to do more develop the social contract and responsibility.
He hoped that the next democratically elected government will recognise that reform is necessary in Pakistan “but how this reform is carried out is for Pakistan and not for Britain, nor do we wish to impose it”.
“We do want to see some of the outcomes and that clamping down on corruption and people should know where corruption is taking place, who is doing it and the culprits should be brought to justice.
“There are tens of millions of people in Pakistan who are looking to improve their conditions and politicians should realise this. That’s absolutely essential if they are going to have the trust of their people. The new government has the opportunity to reform.”
Sir Bruce said he had not seen any evidence or link that British aid money was being used in election campaign in Pakistan through Benazir Income Support Programme. He suggested that Pakistan should pursue projects which build institutions and are not centred on personalities and the system should continue even if the name changes or there is a new set-up in place.
Meanwhile, Britain’s media focused on the House of Commons’ International Development Committee’s report on Pakistan and ridiculed Pakistan’s ruling class. ‘ The Time’ said in a damning editorial that barley one in every 40 of the about 10 million judged to earn enough to be liable for income tax paid any taxes at all.
“This is hardly surprising, considering that in 2011 one of the many wealthy men who did not file a tax return was President, Asif Ali Zardari. Full three quarters of the members of the National Assembly also neglected to file a return”.
The editorial continued: “The authorities in Islamabad are making no serious efforts to collect taxes. They are free riding on the generosity of the people of other nations. The purpose of the development is to help a struggling nation. It is not a substitute for a nation not helping itself.”