Key to revival of economy – demonetize 5000 rupee note

Right from the beginning till to date our economy has been handled by economic experts and qualified economic masters. Why it is that results have always been disappointing and ended up in making selected elite filthy rich and bringing miseries to lower middle and middle class and people living under extreme poverty. When Pakistan appeared on the world map we had 37.5 million Population, now it is over 250 million. There has been a tremendous growth in population and there has been great progress in almost all the fields. By sheer hard work by our scientists we are a nuclear power with most powerful and strong army in the world. Undoubtedly Pakistan in spite of many handicaps and enemy created hurdles and problems compounded internally by hiring local agents Pakistan continued its journey on a road to success and prosperity, but giving rise to two class of people, filthy rich and extremely poor. The true fact and truth is that these two classes are result of rampant corruption in all the sphere of financial activities and all the departments throughout Pakistan without any exception without proper check and accountability. The law has always been protecting the corrupt as we witness when they are temporarily arrested make victory signs while leaving or going in court rooms. All successive governments miserably failed to control corruption that resulted in large scale evasion of duties and taxes right under the nose of tax collecting agencies. It must be stated categorically that state has failed to provide a better taxation system. After 75 years we are still trying to bring people under tax. Our efficiency can be seen that in population of 250 million only 2.5 million are in tax net. We have always relied on in direct taxation rather than broadening the tax net. Lack of grip on large tax payers there is extensive flow of black money causing economic problems and deficiency in cash flow that forces the government to go to IMF and other agencies to cover various deficits. To get loans country has to accept their dictation and pre conditions. They impose such restrictions to ensure that no loan taking country defaults. We did achieve a breakthrough in all fields but at a very high cost. Our defective agreements specially in power sector have remained pain in the neck for every government but nobody bothered to undo the wrong doings. In 75 years we have failed to document our economy and there are no hope as small traders, hotel owners, doctors, engineers and other categories hardly pay tax commensurate with their income. We keep committing blunders but never learn lessons. Blunders and mistakes which were committed both knowingly or unknowingly by our leaders are repeated as a matter of SOP. Let us not brush aside the sacrifices and dedication of our many selfless leaders who were really honest but did not live long. Today most of our assets have been mortgaged, privatized and outsourced due to incompetence and poor governance. The country has financially broken down as claimed by senior economic experts and there is no hope of early recovery. Some say we are nearing default, some say we have already defaulted, some say we are close to default. We don’t have to speculate and draw conclusions what mess our rulers have created. As reported by leading economist of the country. A country that has following overspending figures does not require any debate to know about default condition’s. Two trillion leakages out of 10 trillion public procurements, Rs 7500 billion budget deficit, Rs 2700 billion Circular Debt in gas, Rs 2300 billion CD in electricity, Rs 2328 billion debt by PSE’s, Rs 750 billion debt of PIA and Rs 904 billion debt due to commodity operations. With such alarming situation it is no more rocket science to understand where we stand internally and externally. Today each and every Pakistani including new born children carry burden of debt amounting to Rs 300000
Apart from this there is all time high political instability, non-stop confrontation between government and opposition, poor law and order situation coupled with condition at western borders demands the nation should get united. Allowing caretakers, a day beyond 90 days and lame excuses put forward by ECP would further plunge country into greater disorder and unrest that would further add to meltdown of economy.
It is heartening to note that with the support of Chief of Army Staff action against certain mafias have produced very positive results. Results of raids on illegal money changers, suspected agents operating hawals, money launderers, and hoarders of consumer goods have produced encouraging results. Recovery of dollars, local and foreign currency from un authorized persons has been welcomed by people at large. Joint action by Rangers and Police with the support of army large number of illegal hydrants have been demolished and people arrested. However, it may be pointed out that such actions have been taken in the past with identical results but after sometime the situation is again reversed. There is only one solution long term sentences with heavy fine and confiscation of their properties. Billions of rupees have been looted and the money is stacked in the houses. Isolated action against certain individual is good thing but government should recover the looted money and the only option is to demonetize Rs 5000 note and see the results.
Question arises what is the solution to present crisis and how to revive dying economy. Unfortunately, no sane advice is taken and rulers continue to repeat mistakes of the past. Mostly people are ignorant that we don’t borrow fresh loans to pay off debts but we borrow to pay off the interest on the loans which runs in to billions of dollar each year without disturbing overall debt accumulated over the years. Following measure shall certainly help in controlling meltdown of economy.
a. No more borrowings
b. No import of any item that is manufactured in Pakistan
c. Never plan projects when you don’t have the resources
d. Cut down administrative expenses to half
e. No allotment of vehicles beyond 1000 CC cars except for PM and president 1300 CC Car
f. Retrieval of official cars taken away illegally by all government servants and political clout
g. Documentation of economy at all costs come what may
h. Stoppage in repatriation of foreign exchange in full by MNC’s doing business in Pakistan
i. Everyone must pay tax
j. Stop all type of procurement through tenders. Let departments make direct purchases
k. No government servant to be paid salary more than 5 lac
l. There has been massive corruption in Pakistan, people have kept cash in home, in lockers therefore demonetize Rs 5000 notes without any delay
It is hoped if above measures are taken situation can improve tremendously, failing which we shall be chasing shadows in the dark.