Though corruption is a way of life in Pakistan as all institutions are affected with this malady but the target of retribution, as usual, in media are politicians and not civil-military bureaucrats. Politicians allege that "the sacred cows-military and judiciary-are again united to malign us." Strangely, they are not realising that nobody is preventing them to start accountability amongst their ranks and files and then against all, including the mighty civil-military hierarchy. Accountability should be for all-selective one is as bad as for none. The real rulers-militro-judicial-civil complex-promote corrupt-inefficient politicians and then use media to weaken their authority to take independent decisions as legislators and policymakers. Through these means they subtly profess control over the State. But greedy businessmen-turned-politicians cannot absolve themselves of wrongdoing by using this argument. If they want accountability, they must demonstrate with their actions instead of abusing NAB and what they call the "Establishment".
Pakistan has been a playground for perpetual corruption-rent-seeking, fiscal crimes, tax evasion, plundering and wasting of taxpayers' money. No serious effort has ever been made by successive governments-civil and military alike-to crack down on the plunderers of national wealth. On the contrary, the list of beneficiaries of erstwhile National Reconstruction Ordinance, 2007 (NRO) and money involved was shocking-over twenty five thousand accused of financial crimes worth Rs 700! The beneficiaries of NRO not only survived, many were even elected who continue to indulge in rent-seeking proving the point that rampant corruption and unprecedented tolerance towards dirty money has become a way of life in Pakistan. This poses a great threat to the State that is under attack from ruthless terrorists who get funds from the corrupt for lending them "security" in return.
We must not forget that surrounded by a herd of sycophants, General Pervez Musharraf, in order to perpetuate his rule, promulgated NRO on October 5, 2007-just a few hours before the presidential elections-a law that was patently unconstitutional. Those who got it done took great pride in striking a deal with a military dictator-their supporters in Washington called it a 'victory' for winning civilian support for military puppet. Musharraf had, however, a different sinister plan in mind. He was thinking of using this lethal weapon to secure lasting support and subordination of corrupt politicians as he probably assumed that on availing amnesty they would confess their guilt and would never be able to revolt against him. Musharraf was confident that the beneficiaries of NRO, as guaranteed by the Washington, would "cooperate" with him-accept him president for another term of 5 years at least, if not more. His plans blew apart due to the imprudent and foolish action of November 3, 2007.
In the wake of November 3, 2007 action, Benazir Bhutto accused Musharraf of violating the terms of "understanding" reached through guarantors in Washington and London. She decided not to "negotiate" any further with Musharraf. The military dictator, totally isolated, took refuge somewhere else-found new partners to remain in power. But, he miserably failed to win the support of his angry masters. In the process of unlawfully perpetuating his rule, he deprived this nation of a great leader.
The NRO was ostensibly aimed at giving relief to persons "falsely involved for political reasons or through political victimisation in any case initiated between 1st January 1986 to 12th October 1999. But in reality it was meant for pardoning the looters of national wealth. Politicians, instead of showing firmness while dealing with the issue of NRO and its beneficiaries, protected the black sheep amongst them which tarnished their image further. Besides, the masses lost whatever little faith they had left, in the system.
The determination of quantum of black money, rent-seeking and tax evasion is a daunting task. It is an incontrovertible fact that Pakistan is a unique case where the State rather than combating corruption, sponsors and patronises all kinds of undesirable practices. Pakistan is a victim of reverse capital flows and capital flights due to policies of appeasement by successive governments towards the corrupt and criminals. Every year billions of dollars are sent abroad and then a part of this dirty money, hidden in tax havens, is legitimised using schemes provided by the State. It is widely believed that out of total remittances of US $18.4 billion in 2014-15 received through normal banking channels, about 40% were on account of "round-tripping". Additionally, about US $20 billion was poured into the economy through informal channels (hundi, hawala etc).
Pakistan has a permanent money laundering and tax amnesty scheme in the form of section 111(4) of the Income Tax Ordinance, 2001 that facilitates the whitening of dirty money and tax evaded funds. It guarantees tax exemption for money brought into Pakistan through normal banking channels. Through this section, tax evaders get their undeclared money whitened by paying just an extra 1.5% to 2% to any money exchange dealer to get remittances fixed in their names.
According to economist Dr Akmal Hussain, "the institutional structure of Pakistan's economy is designed to generate rents for the elite at the expense of the middle classes and the poor. It is this structural characteristic of the economy and not just bribery that prevents sustained high economic growth and equity". This is an important statement to understand the morbid story of corruption, the spectre of NRO and timorous role of NAB as a watchdog.
The ultimate cynicism that afflicts a society is acceptance of corruption as a way of life. Unfortunately, after six decades of independence, this is precisely where we have reached. Pakistan by all means has a soil, which is very well suited for illegal gains since the very early days of independence when allotment mafia came into existence and many notorious elements who turned rich overnight, later became politicians and bureaucrats. They now control all spheres of life in this country.
Pakistan cannot progress unless foundations of corruption and rent-seeking are destroyed. For this it is necessary to forfeit all benami (untaxed) assets in favour of the State. Immunities and amnesties for criminals, plunderers of the national wealth and tax evaders must be abandoned without any further delay. Unless the government shows determination and sternly cracks down on the parallel economy, things will not change.
The majority of the members of Parliament have declared shamelessly low incomes as evident from Tax Directories for 2013 and 2014 published by FBR. The elected members, politicians, public office holders, bureaucrats, generals and judges should be investigated by an independent commission, comprising experts and men of impeachable integrity, as to ownership of their assets (in own name, family, relative and benami) and style of living vis-à-vis their declared incomes. This process alone will ensure true accountability in Pakistan. Once the rich and mighty are taken to task, the citizens will abide by laws and pay their taxes honestly and diligently.
(Concluded) (The writers, lawyers and partners in law firm HUZAIMA IKRAM & IJAZ, are Adjunct Faculty at Lahore University of Management Sciences (LUMS).)
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