Reversing the decay

The biggest challenge for any government, institution or organisation in Pakistan is reversing of the continuous process of decay that started soon after the death of Quaid-e-Azam Muhammad Ali Jinnah and accelerated after dismemberment of the country in 1971 due to wrong policies and actions or inactions of the successive rulers, military and civilian alike. The heads of various institutions, responsible to counter the rot, became a catalyst for their temporal gains or appeasement of the political masters, in Khaki or Mufti.
The head of Pakistan Tehreek-e-Insaf (PTI), cricket-hero and popular figure, Imran Khan, with the slogan of Naya Pakistan (New Pakistan), after victory in 2018 elections in his victory speech pledged to reverse the decay and make Pakistan a welfare state. While every Pakistani wants him to succeed, a few stubborn critics raise the issue of presence of unscrupulous elements within the PTI, who with money power, they apprehend, would be the main stumbling block in the way of this intended reformation stride. We should all wait and avoid speculations. In democracy, the voters have ultimate power to reject those who cheat them and do no not fulfill their promises. Imran Khan would not be an exception. The importance is that of continuance of the process of democracy and accountability.
The main malady faced by our nation is defeatism. Everyone says our system is now deteriorated to the extent that it cannot be restored. People, hooked on easy money, have accepted corruption as a way of life. "We all are now incorrigible," is the untoward consensus. So, the conclusion is "let things continue as they are". This is the worst one can think of! Under these circumstances when anyone talks of reforms or improving things, people start showing pessimism as they are completely disillusioned because of the prevailing confusion and incoherent conduct of all leaders.
The anchors of various widely-viewed TV talk-shows on a daily basis, with a few exceptions, after victory of Imran Khan, are expressing scepticism and or pessimism that nothing would change. None of them has ever bothered to inform their viewers that one of the worst consequences of lack of accountability of the powerful is its pernicious effect on the general moral fabric of society. Protection of the powerful and corrupt puts integrity at a discount and places a premium on vulgar and ostentatious display of power and wealth. This shatters the faith of the common man in the dignity of honest labour and virtuous living. Can democracy ever flourish in such a society? Democracy embodies some vital elements that are: fair and just electoral process and responsible governance protecting the rights of people, sovereignty of parliament, separation of powers, independence of judiciary, accountability and rule of law. Our society lacks all these elements and of course the results are before us.
In 'Amnestomania', Business Recorder, January 5, 2018, it was highlighted that addiction on easy money (it includes speed money, rent seeking, tax evasion, proceeds of crime and fraud, etc.), is a peculiar Pakistani disease. The crooks that rule or finance rulers support and promote amnesties and immunities in the name of "good economic measures" or "necessary evils" or "unavoidable actions" or "compulsions" etc. These are nothing but pretexts. They violate the laws with impunity and then plead for tax amnesties, immunities and concessions. The question is that why do tax evaders and plunderers of national wealth need specific amnesties and that too on periodic basis? In the wake of Panama, Bahamas and Paradise Papers etc, certain Pakistanis (not all) who have assets abroad, were asking for an amnesty scheme to whiten the same. Shahid Khan Abbasi and Miftah Ismail announced yet "another amnesty" and Parliament passed it unlawfully, yet not a single anchor did a programme to highlight these misdemeanors:
1. The Foreign Assets (Declaration and Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act, 2018 could not be passed as Money Bill as held by Supreme Court in Workers Welfare Funds m/o Human Resources Development, Islamabad through Secretary and others v East Pakistan Chrome Tannery (Pvt.) Ltd through its GM (Finance), Lahore etc. and others [(2016) 114 TAX 385 (S.C. Pak.)], Mir Muhammad Idris v FOP PLD 2011 SC 213 and Sindh High Court Bar v FOP PLD 2009 SC 789.
2. Why did Supreme Court not take any action for this blatant violation of the supreme law of the land in giving amnesties?
3. Why information was kept secret in violation of Article 19A of the Constitution of Pakistan from the media?
4. What has happened to inquiries ordered for offshore companies and assets by the National Accountability Bureau?
While our government and parliamentarians during the last many years have been busy in extending amnesty schemes, immunities and concessions to tax evaders to decriminalize their illegally-gotten wealth and avoid all kinds of probes and punishments under various laws, the world governments showed commitment to take tax cheats to task. Both the governments of PPP and PMLN during the decade of democracy (2008-18) promoted crony capitalism, nepotism, and protected tax evaders. The land mafia provided them huge funds and they accommodated them accordingly. Where was the so-called vigilant and independent media? They were taking advertisements and other favours from these tycoons and became part of the politicians' mud-slinging campaigns against each other.
Pakistan has been a victim of both reverse capital flows and capital flights due to policies of appeasement by successive governments towards the corrupt and criminals and media remained a silent spectator. As a first step all media owners must make public, their personal tax returns and that of their business houses. As per tax directories published by Federal Board of Revenue (FBR) many are in losses! Many leading media houses have not been paying regular emoluments to their employees. It is easy to plead accountability for others but difficult to offer one's own affairs for public scrutiny.
Quest for power, money and fame is not restricted to any particular segment of society or class of persons in Pakistan. Take the example of Judicial Branch of State. The judges are not ready for audit of Supreme Court and make their own assets public. Quest for fame, power and money in itself is not undesirable, but the real problem begins when it becomes lust for achievement of which corrupt practices are adopted. A society ruled by the corrupt, greedy and hypocrite, especially when they hold key positions, is doomed to decay like us. Now, the biggest challenge is who will reverse the process of decay and how?
The elites of Pakistan (ashrafiya)-indomitable military-civil bureaucracy, corrupt politicians and unscrupulous businessmen-keep on singing the mantra of "patriotism" (sic) but are involved in all kinds of undesirable activities. They indulge with impunity in rent-seeking, power politics, plundering of national wealth and organised crime. They consider it as their inherent right to deprive the poor of their fundamental rights. Lack of accountability and unprecedented tolerance towards corruption has made Pakistan a State controlled and run by ruthless forces representing money power. It is thus no wonder that democracy could never take firm roots here even after 71 years of independence.
Reversal of decay and democratization of society is possible only through a credible system of accountability that works across the board-with no sacred cows like the judiciary and army as in our country. These institutions claim to have their own systems of accountability but end up protecting each other rather than punishing offenders. If mighty segments of society-politicians, high-raking state officials, judges and big businessmen-are not accountable, then how can democratic dispensation, transparency and rule of law be established? The public has no access to their tax declarations justifying sources of income through which they and their family members have amassed enormous wealth and assets? Unfortunately, Pakistan has become a place where rampant and institutionalised corruption has become a way of life. In tandem with this silent conspiracy is the fact that the existing laws against racketeers are not enforced and if at all some action is taken, the penalty is ludicrous.
Unfortunately, Pakistan has become a place where rampant and institutionalised corruption has become a way of life. In tandem with this silent conspiracy is the fact that the existing laws against racketeers are not enforced and if at all some action is taken, the penalty is ludicrous. In every-day life, there are many glaring examples of how corruption has become institutionalised. Take the business of cars. Even today, locally-assembled cars are selling at a premium! Who is making money in this whole game? Why Pakistanis are forced to buy decade old models at exorbitant prices in the name of protecting local manufacturers? Are they not remitting money abroad through the mechanism of transfer pricing? On impressive highway from Lahore airport, in the unending line of sprawling bungalows, one can see the emergence of a society flushed with money. The dazzling suburbs of Defence Housing societies were non-existent before 1977. The story of their egress is still shrouded in mystery. Under the shadow of martial laws, many in uniform and in plain clothes found favour with the men who matter in the land and who were given State lands at throwaway prices-this practice continues till today even under the civilian rules.
The real issue is not just mentioning a few individuals but to analyse the real causes behind the existing corrupt system. Money from whatever source it comes, is the catchphrase in our society: aid money, drug money, foreign money, American money in exchange for fighting war against terrorism (sic), and 'black' money (which can be 'whitened' by just 'remitting' through normal banking channels or investing in stock exchanges!). One just needs to go to a licenced money exchange company, pay the premium for telegraphic transfer to one's account, which is instantly arranged. A very simple way of money laundering and no accountability even before the tax administration [section 111(4) of the Income Tax Ordinance 2001 gives full protection to such sham transactions]. Is there any other State in the world that gives this kind of patronage to such criminals? Answer must be an emphatic 'NO' even though the proof of it being spent is available everywhere: in the ostentatious lifestyle of new urban development, in the bright galore of foreign cars on the roads, in the smugglers' markets brimming with latest foreign electronic gadgets and in the shops crammed with foreign goods. Who says this is a poor country? The government is no doubt poor (sic) but the people are very rich-check out the number of rural people going for Umrah these days and lavishly spending the good support price for their bumper wheat crop.
The chief preoccupation and addiction of this nation is money. Everybody is yearning for luxurious lives while their fellow countrymen are dying of hunger and diseases in open camps. This mad race for money and lavish living explains why society as a whole is indifferent to corruption. "How do you make your money"? We asked a young industrialist from Karachi. "Easy," he replied, describing his own success story: "We import everything and with some good contacts, strike a few deals with Customs high-ups, sit back and enjoy the fruit for life." A dangerous result of all this is that in our society all rights have become privileges and privileges have become rights. The public has a right to services like education, health and transport, but the system behaves as if it is offering a privilege. The public servant is duty-bound to serve the public-instead he behaves as if it is inconvenient to do so. Most people working for the state are no longer interested in performing their job but in finding ways to extract a premium from the hapless citizen. The premium or, more accurately, bribe is now an accepted practice.
Tragically, it has become a free for all society and laws that are designed to prevent this just fall by the wayside. The general attitude is of helpless resignation, an acceptance of the defeatist principle that if one is to survive one must become part of the game. It then becomes dangerously akin to the rule of jungle-might is right, the weak are meant to fall out and the predators meant to prey freely. The bleak side of the picture is that the persons-judges, politicians and bureaucrats-who are capable of checking this distortion, are unlikely to oblige: for it would sever their power base and financial lifelines. If the system is to be saved from sinking into greater chaos and ultimate collapse, corrective actions must be taken forthwith. The starting point should be a clear recognition of the State's role with respect to harmonious working of legislature, judiciary and administration.
At this point of time, the country needs unity and stability for revival of economy. All the leaders must condemn the recent shameless statement of U.S. Secretary of State Mike Pompeo that "any potential International Monetary Fund bailout for Pakistan's new government should not provide funds to pay off Chinese lenders". All citizens of Pakistan should tell him that availing IMF funds is our right as a member-whether we take any loan or not, is our own choice. It is not charity from anybody or political favour from the United States. Who is Pompeo to dictate the IMF or the multilateral institution has admitted that it is subservient to Uncle Sam and is a part of their foreign policy tool. No doubt it a political statement-rather a very cheap shot and highlighted by our media without soliciting the comments of local experts. Let us educate our media and the US Secretary of State. The money from IMF cannot be utilised to "pay off Chinese lenders". IMF's funding goes to reserves. It does not become part of federal budget, though remains a federal liability. The divided Pakistani leadership involved in petty matters without realising that this year alone we need $15 billion to meet balance of payment gap, is giving an opportunity to hostile US administration to malign Chinese projects that according to the latest position would reach nearly US$100 billion by 2030. It is high time all political parties join hands to counter forces antagonistic to China Pakistan Economic Corridor (CPEC) and make collective efforts to put our own house in order.
The new government and all institutions of state will have to vehemently devote their entire energies to enforcing laws that protect the public from cheats and racketeers rather than supporting a system which protects and encourages them. This requires at the top a bold and clean leadership, capable of restraining the ballooning state, proclaiming this unpalatable truth and setting standards for the rest of the citizenry. Unless such a leadership emerges and acts fast with the help of masses, no positive results can ever be attained in fighting corruption no matter how many institutions like NAB, FIA exist or suo muto cases are taken up by the apex court. In short the ball is in the court of Imran Khan and his team. Let us hope that the entire body of elected members in National Assembly, Senate and even those not elected, join hands and with the support of masses reverse the decay we are witnessing for the last many decades. Rising above the party-lines and political differences, this should be made the common resolve for August 14, 2018, 72nd Independence Day and marking new beginnings.
(The writers, lawyers and partners in Huzaima, Ikram & Ijaz, are Adjunct Faculty at Lahore University of Management Sciences)