Saad
On, April 23, 2022, a study circle was arranged by PrSF NUML unit at ICMA Park in Islamabad. The circle was led by AWP Punjab president and the development researcher Ammar Rashid and PrSF member Mohsin Mudassar, title of the circle was “An Inclusive Transformative Roadmap for Development: A Progressive Alternative”. Attendees included students and working-class members from diverse backgrounds. The speakers at the circle thoroughly discussed Pakistan’s economy and the reasons behind such crippled economy.
Ammar Rashid explained how the IMF policies have been devastating for Pakistan as the country has approached IMF 13 times since 1980 including the last time being in 2019. In order to look into the reasons of country going to IMF, we need to figure out what are the obstacles that never let Pakistan’s economy to stand on its very self. One of the prominent reasons for such economy is twin account deficit. As we can not stop our imports because we can’t manage those things in our own country, of same quality at least, the country needs to find out routes to increase its productivity which demands reforms and policies.
Speaker, at the circle, told how the state has been whoring itself for its strategic location and getting the bills in country. Weather it’s Afghan invasion or War on Terror, Pakistan has always presented itself as a rentier state in terms of its location and military power. Pakistan’s primarily focus has been oriented around national security thus all the focus has been shifted towards the military related things i.e. military and military owned businesses) and rest of the institutions have been totally neglected.
Pakistan has one of the lowest tax to GDP ratio. In Pakistan, mafias and cartel’s owned business-like Sugar Mills and Real Estate Business (i.e. Jahangir Tareen & Malik Riaz) don’t contribute much to the total tax collection of Pakistan rather they get benefit from tax amnesty schemes and eventually poor inhabitants of the country pay huge amount of tax on pretty much everything like food and grocery. Billions of dollars are being lost only in real-estate in Pakistan.
The solutions given by speakers included a new productivity-based tax system that will put the leash on the institutions that have been free from paying tax and it will decrease the tax burden on the lower class.
We also need immediate land reforms in our country. The land needs to be made productive in terms of agriculture or other projects. Government should increase taxes on lands that are non-productive and are totally capitalists assists. Pakistan’s real-estate is one of the most corrupted sectors in the country it must be regulated which again demands lands reforms.
Women being cut out of participating efficiently in economy of Islamic Republic of Pakistan also a factor of such economy as women in the country contribute only 24% to the labor force.
We also need to introduce a banking system that supports development projects and not attaining unproductive assets. We need to focus more and more on productivity and tackle what hinders its way.
The video of the circle can be watched here: https://web.facebook.com/PRSFIsbRwp/videos/299943335657983
