Reform Agenda for Pakistan

Reform Agenda for Pakistan

Huzaima Bukhari & Dr. Ikramul Haq

Pakistan needs all out fundamental structural reforms in all areasof governance and not in tax system alone (already elaborated in our book published by PIDE). The salient points for consideration of all political parties and national debate to evolve National Reforms Agenda, beyond party affiliations,before next elections can be: 1. Creating new province—South Punjab Province—for which constitutional amendment bill is already lying in National Assembly, filed on March 24, 2022.  2. Making Karachi federal territory to ensure that it gets due funds and best administration. 3. Carrying out fundamental reforms in the justice system and in administrative/governance apparatuses to eliminate the causes of litigation. Ensuring efficacy and accountability of all institutions.  4. Revamping of education system to end ignorance and illiteracy, and make people skilful rather than distributing paper degrees and diplomas. Focal point of education should be creating a society that is tolerant, disciplined, courteous and knowledgeable—capable of making innovations and technological advances.5. Holding direct elections of Senate and giving it powers to vote on Money Bill. 6. Decentralising political, administrative and financial responsibility to local governments. Education, health, housing, local policing, and all civil amenities should be provided through elected representatives of the local governments that should have powers to raise taxes for these purposes.7. Digitizing, enforcing transparency and accountability in the governments at all levels to enable citizens to understand and participating fully in the process of national integration. 8. Reforming civil services, ensuring fair deal for employees with effective and across the board accountability. 9. Eliminating terrorism, sectarianism, bigotry, intolerance and violence through enforcement of law and by taking concrete measures to ensure social development of society based on higher values of life and humanity.10. Implementing strict laws to curb terrorist financing, money laundering, plundering of national wealth, political write off of loans and leakages in revenue collections. 11. Devising long-term and short-term strategies to break the shackles of debt-trap, making Pakistan a self-reliant economy and ensuring social security and economic justice for all citizens.12. Reforming and strengthening of management of public finances. Transparent public sector spending coupled with efficient performance.13. Controlling wasteful, non-developmental expenditure.14. Reforming of technical, institutional and organizational dimensions of public finance.15. Ensuring good governance and corruption free administrative and judicial structures.16. Federal government should only collect income tax and customs duty. Harmonised sales tax on goods and services should be in the provincial domain. All federal, provincial and local taxes should be collected through one agency (National Tax Authority) which should also disburse pensions and other social security payments to all citizens.17. Reducing excessive marginal tax rates making them compatible with other tax jurisdictions of the world, especially in Asia.  Substantially reducing corporate rate of tax. Eliminating onerous taxes and other regulations for corporate sector that are main stumbling blocks for domestic and foreign investments. Simplifying tax laws and procedures.

Dr. Nadeem Ul Haque, Vice Chancellor of PIDE, in HowPakistan Became an Asian Tiger by 2050 has offered an optimistic, futuristic and realistic perspective for a prosperous Pakistan. Unfortunately, this work has yet not been given the attention it deserves by policymakers, legislators, academicians, businessmen and administrators. Our politicians, administrators, intelligentsia and entrepreneurs keep on complaining about multiple and complex challenges faced by Pakistan but seldom strive to implement even the available and workable solutions by local experts. We want IMF, World Bank and others to reform us. This is our real tragedy and dilemma. We must appreciate and implement the indigenous research-based solutions after debate in public and in national and provincial assemblies and Senate. The Standing and Special Committees should invite (through virtual platforms if needed) experts for assisting and there should be live telecast so that public learnsthe process of legislation for beneficial reforms.

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Huzaima Bukhari & Dr. Ikramul Haq are  lawyers, Adjunct Faculty at Lahore University of Management Sciences (LUMS), members Advisory Board and Visiting Senior Fellows of Pakistan Institute of Development Economics (PIDE). 

They can be contacted at: huzaima@huzaimaikram.com[mobile: +923008463310] and ikram@huzaimaikram.com[mobile: +9230084962025]