Self-reliance is a great virtue and sustains individuals through major trials and tribulations. Nations too, who depend on themselves can achieve greatness. China is a living example of this axiom. We in Pakistan have landed ourselves in such dire straits that our friends, no matter how well-meaning and sincere they may be, have come to look at us as a "bottomless pit" where no amount of aid or loan can help get us back on our own feet.
Perforce we have to rely on our own resources, and not to expect any one else to bail us out. Our planners have to realise one characteristic of bankers - big or small. They are fair-weather friends, and lend only to those who least need it. Any one in a real bad shape can never expect a banker to help him recover
his financial health. On the contrary, the bankers want their money back from any borrower who cannot pay back (because he does not have the money to do so). The same holds true on an international scale with sovereign states' credit risks. The poorest ones find it most difficult to raise funds. The rich have no such problems - in fact, they get banks offering them funds without their asking for it. The amount of US Treasury Bills outstanding is a testimony to this fact.
There are certain pre-conditions for achieving economic targets the most important being law and order and a general sense of peace and security, to start with. This applies to conditions within the country, as well as at the borders with all our neighbours.
To achieve the targets, some basic reforms and modernisation, coupled with a positive change in our mind-set are MUST. The bureaucracy, and particularly, the police and judiciary have to be inculcated with a true spirit of revolutionary zeal and service to the nation rather than "ruling" over it with a colonial mind-set.
The agricultural sector has to be given an uplift to raise the productivity 100 times what it is now. This is not at all incredible, as it sounds, and it has been achieved elsewhere, so why not in Pakistan? Much has been written during the past 3 months in these columns on this very subject, so it is not an entirely new idea, but a reiteration of previous practical suggestions.
A call has repeatedly been made by various quarters to do every thing on a 'war-footing'. Well, let us do it exactly that. Have a general conscription and enlist every able - bodied citizen (between the ages 18 to 55) for a compulsory national service for a minimum of 2 years - at a stretch, or spread over several calls of duty over a period. The fields of services could be: Health sector, education, technology, agriculture, horticulture, engineering, road-building, communications, transport, shipping, technical training, etc-etc, besides the Armed services, police and other strategic domains. This will eliminate the discrimination and feelings of deprivation among military personnel and civilians, besides carrying the opportunities of education, health and medical services, and gainful employment to the doorsteps of every household in all nooks and corners of the country. It will help eradicate poverty and illiteracy throughout the country in a very short time. Then there should be emphasis on technical education and research, so that we can produce our own technologies and teach others, not the other way round!
Infrastructure should receive top priority on a BOT basis in the private sector,to achieve quick results without major burden on public exchequer. Once these facilities are in place, Pakistan can exploit the strategic advantages of its geographical location to the hilt, and become a huge centre of entrepot trade.
Industries should be geared to achieve self-sufficiency first, and then create an exportable surplus. Mineral resources, particularly in NWFP, Balochistan and Sindh, can yield trillions of rupees annually if properly developed. This also has been a subject of discussion in these columns.
Areas like fisheries and aqua-culture, animal husbandry, tissue-culture, farming of arid lands, water conservation, power generation, off-shore drilling for oil and gas, date palm plantations all over the desert areas, cottage industries, small industries, micro-finance, et al, are sectors that can transfer the economy into a vibrant and dynamic force in a very short time.
All these and numerous other suggestions have been made and will continue to be made, but the main hurdle is finance. How are all these going to be paid for, and where is the money coming from? That precisely is the purpose of this article, but it needs very clear "out of the box" thinking, and an opportunity to express some of the ideas in special meetings at top levels, as certain confidential aspects can have detrimental effects, if aired in public.
However, some of the suggestions can be made here, in the hope that, political considerations and 'ruffling of feathers' in certain influential lobbies, will not bar their discussions in public.
First and foremost, is a re-vamping of our tax structure. The tax laws should be made simple and straight-forward, and all exemptions and special, discriminatory provisions should be removed to give a level playing field to all. This includes the privileges afforded to certain vested interests, and groups or individuals.
The guiding principle for taxation and distribution of wealth is 'equitability'. Everybody should receive, according to merit, a basic minimum for support of his family at a decent level, and more according to his qualifications. On the other hand, taxes must be levied according to the individual's capacity to pay, not burdening the poor and pampering the rich. This is something which should be enforced immediately, and not wait for future generations.
According to a 'guesstimate' the implementation of full range of these proposals can be achieved in about a decade, with visible results. In a follow-up, article, certain specific proposals in concrete form will be presented.
To be continued