Finance Minister Naveed Qamar has made an unequivocal commitment to incorporate the maximum possible number of recommendations of the newly constituted Economic Advisory Council in the forthcoming Budget proposals for fiscal 2008-09. He pointedly mentioned suggestions for relief to the common man as a matter of top priority, given the existing macroeconomic problems, and other constraints.
The EAC comprises individuals of outstanding calibre from the private sector, representing a vast spectrum of diverse interests, and there is no doubt that all of them are fully cognisant of the extreme pressures most of the people in the country are living under. Probably eking out a bare existence better describes the 'living', if that.
Food scarcity and high inflation have pushed every other problem out of sight. Two square meals a day has become an impossible dream for a vast majority of families, driving housing, health care, education, transport and all other concerns of daily existence and building a future into virtual oblivion. Not that these problems do not exist, it is just that for most people hunger and starvation and non-availability of even the basic staples, is driving them to total distraction.
The number of suicides, murders, robberies and other inhuman and anti-social activities are a manifestation of this grim reality. People will go to any extreme to get a loaf of bread for their children or themselves, pushing all other thoughts as of secondary importance.
But this is not a desirable situation. The state has a responsibility to provide equal opportunity to all citizens to feed, clothe, house, educate and provide a healthy environment for their families and themselves.
The EAC members will have numerous other considerations too, in order to set the national economy back on track. The problems are myriad and formidable, and all of them need an immediate solution. A few suggestions are presented here from a common man's point of view (as opposed to special interest groups) to facilitate transmission of words and empty promises into actual deeds and palpable realities for benefit of the people.
A. FOOD:
i) Cost of all food items of daily use have to be brought down to an affordable level and their availability in all corners of the country assured. For this purpose, formation of consumers co-operatives in all localities, well stocked and supervised to ensure timely availability of food and other essentials of daily household requirements must be established in the shortest possible time to eliminate hoarding, profiteering and artificially created crises of shortages and high prices.
Each co-operative must have a registered number of households (bearing ration cards) as their exclusive clientele in their locality. This will obviate the role of middlemen (stockists, wholesalers, retailers, as well as rank outsiders like speculators cornering the market). The supplies to the co-operatives should be directly from the growers, producers or manufacturers, ensuring fair price to both the producers and the consumers.
ii) A national policy of annual production goals for agricultural and other products should be enunciated keeping in view the growing population and demographic changes of various age groups. These goals should be apportioned between appropriate producing areas and units to ensure a balanced production (no excesses or shortages) to meet the actual requirements for domestic consumption, industrial use and/or export. Universally acceptable health standards must be ensured.
Agricultural banks or consumer co-operative banks should be established in all localities to facilitate financing to growers and productive units, as well as the consumers or small enterprises.
iii) Grain silos must be constructed at strategic locations for storage of wheat, rice and other cereals, to avoid wastage and deterioration in storage.
iv) Import of essential items, if in short supply locally, must be ensured timely to prevent inflationary pressures.
B. INFLATION:
a) A realistic cost of living index should be prepared, based on retail prices actually obtaining in different parts of the country. And this should be updated on actuals on daily or weekly basis.
b) Dearness allowances should be adjusted for all employees on a regular basis to reflect the movements in the index.
c) Pay scales and pensions should be brought to a decent level commensurate with living at a comfortable level for all, with incentives for outstanding performers.
C. HEALTHCARE:
Immediate steps should be taken to provide best health care and services to all strata of society at an affordable cost, or totally free in deserving cases. Special budget allocations should be made under this head on national, provincial and local levels for ensuring an adequate health service accessible to all, without discrimination.
D) EDUCATION:
Compulsory, free education up to matriculation level, and incentives for higher education in deserving cases should be the target to be achieved in the shortest possible time. Vocational training in various disciplines through local centres, should be provided throughout the country, starting with the least developed areas in NWFP, Balochistan, rural Sindh and lower Punjab.
E. HOUSING:
i) Low cost housing of a comfortable standard and proper sanitary environment should be provided to all house-less families or 'Katchi Abadi' dwellers.
ii) Rents should be regulated to provide relief to sufferers.
These are some of the goals that need immediate attention for relief of the common man. No doubt the EAC members representing special interests will have their own ideas and suggestions too.
F. FINANCE:
The government is faced with insurmountable deficit and shortfalls in revenues plus rising cost of imports, specially oil and some other commodities. There are also grim situations of power shortages, and a deteriorating infrastructure. These macroeconomic problems cannot be solved overnight, but a good start may be along these lines:
a) Broadening of tax net (like agricultural income, wealth tax, stock markets, tax on professionals such as doctors, lawyers, tax consultants, etc who generally do not declare their actual income), and elimination of discretionary powers under SROs favouring influence peddlers, and other discriminations.
b) Self-sustaining power generation, and other public services like aviation etc, abolishing subsidies.
c) Normalising law and order situation, to attract foreign investment.
d) Overhaul of bureaucracy at all levels to eliminate inefficiency, corruption and wastage. Appointments should be on merits only, and those politically motivated, or based on influence only should be prohibited.
[To be continued]
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