Pakistan as a country and as a nation, particularly at the government level, seems pretty ‘determined’ not to take any lesson from the past follies. The course that was blindly followed since decades, termed more than often by serious minds as direction-less, has at last brought us to a state of extreme wilderness and utter disappointment. People seem to be loosing hope in future and getting frustrated and indifferent - a highly dangerous sign - but totally overlooked or simply not understood by those who feel happy to rule but lack the skill and wisdom to lead.

On the surface, we have tried since Independence, varied options and philosophies - excepting only the true form of our own founding ideology. We have sufficiently experienced democracy, controlled democracy and martial law - both civil and military - on the political and governing level. In the field of economy, we have tried numerous imported modes and tools, ranging from open economy capitalism and neo-capitalism to the half-cooked socialist and the so-called ‘Islamic’ systems; none to any avail, as is significant from the current state of affairs. Worst of all, the mindless leadership does not listen to any sane counsel and insists to tread the beaten path. We feel time is ripe for the nation to look back, make a quick assessment of the government policies and actions and look for means to deliver it from a situation which is fast approaching the point of no return.

The Government’s Performance: Claims and the Realities

The euphoria is over. The big mandate has proved weightless and totally frustrated, landing also the country into the mud of turmoil and uncertainty. Economy was showing no signs of recovery. People have received nothing but empty rhetoric. It has proved to be an era marred with lack of wisdom, ill-timed decisions, direction-less initiatives and messed up priorities. Neither the 13th amendment could stop terrorist activities and killing of the innocent people, nor the 14th amendment could live longer. People are openly cursing themselves for voting Mr. Nawaz Sharif and his party into power and have realized that the ‘smaller evil’ (choti burai) was not much smaller than the ‘bigger evil’.

What the Prime Minister calls his achievements over these past 9 months, have very little relevance to the common man. Let us see: (i) Ms Bhutto’s Swiss banks accounts have been frozen; masses will, however, applaud, if the plundered money was really brought back in Pakistan -- . And there was need to also catch other defaulters and plunderers, including those within the government ranks. (ii) Mr Nawaz Sharif knocked out the President and the constitutional clause 58(2)(b) and he did finish ‘dissent’ within his parliamentary group through the 14th amendment, reversed since he tried to over-power also the judiciary in the name of ‘sasta aur fauree insaf’. He has made the ‘motor-way’ a symbol of pride for himself, to be completed at all costs - even if it means leaving other sectors of the society and economy high and dry. It appears, next in his priority list was to ‘right-size’ the military. None of all this directly concerns much to the common citizen. Because the success in these endeavors only adds to power in the office of the Premier, and more specifically in the personal satisfaction and strength of Mr. Sharif and his family. The people never asked for establishing some sort of kingdom and dynasty.

The government policies and actions have only hurt the civic and economic life and honour of the people. Taking notes with thanks from Humayun Gauhar (Politics & Business: Nov’97), we state briefly:

(1) Before and soon after coming to power, it was repeatedly announced that the beggar’s bowl will be broken. Instead the nation finds itself in bigger trouble. In an attempt to please IMF and the World Bank to extend loans, government accepted their anti-human demands. As a result only indebtedness and unemployment have increased.

(2) While presenting the budget (1997-98), it was loudly promised that no mini-budget is to come. Yet prices of the POL, wheat etc. have been raised. Rupee has been devalued, lately ‘downsized’ by a record 8.71%, the most unkindest action of the government in face of the present inflation (above 15%) and the economic stagnation. Devaluation as claimed was needed to boost exports - the same old deceptive tactic. What surpluses Pakistan however had which were not getting exported for want of devaluation? Surely none. When Benazir government devalued Pak rupee four times, it could not help increase exports. The reason then was the same. How would it help now, unless production was increased - a dream that may not come true seeing the sick industries still remaining palsied and moribund as before and the cotton crop washed down the drain.

(3) Inspite of all promises, the government has not been able to control inflation, which certainly runs above 15%. Notwithstanding what the Finance Minister insists, an equally authentic government source concedes it was 14%.

(4) As usual, the budget estimates and targets have proved unrealistic, rather deceptive. See for instance that revenue collection has fallen short of what was envisaged leading to periodic adjustments; against all claims cotton will again not be available for export, as the production will be any where within 9 million bales, as assessed by the government’s own fact finding committee; the seven reform packages of the Premier, his pampering of the traders, the great reliance reposed in supply side economics and the hectic efforts of the CBR, all combined have only failed to take economy out of the stagflation.

(5) Off and on the government repeats its intention to implement General Sales Tax (GST) scaring the traders and the public. The irony is that the government was simply unable to document the economy, yet pretended acting like an advanced and sophisticated economy.

(6) Regarding common man’s honor, the anti-terrorism bill may be quoted, which only aimed at establishing what is rightly called a ‘police state’. The professed goal of elimination of terrorist activities is still not in sight - killing of the Iranian cadets and latest bloody events in Karachi (Binnori Town and the four Americans) provide ample testimony.

(7) The prime minister had announced in his first speech after taking the oath of the office, that ‘riba’ amounted to waging war against Allah and His Prophet (p.b.u.h.). He then took some time to ensure people have forgotten what he said and staged the drama of retrieving his appeal from the Appellate Bench of the Supreme Court, concerning Federal Shariah Court’s decision on ‘riba’ (1991). To gain some more time and as if nothing was done before, he assigned the task to a commission headed by Raja Zafarul Haq, to recommend, ways and means to eliminate ‘riba’ and Islamize the economy. Raja Sahib has submitted his report, but the prime minister was so busy with the ‘lotacracy’, the judiciary and the motor-way, that he could not consider even a temporary cease-fire against Allah.

(8) The nation has passed through one, what is termed, ‘full-blown’ ‘atta’ crisis. To add to it were the rumblings of yet another, which could overtake the government. Common person was crying under the burden of high prices, the rising utility bills and the daily worsening conditions, since Nawaz Sharif took over, yet the government was complacently claiming every now and then that there was no crisis. Finding no jobs, the youth was getting growingly lawless. Merciless retrenchments in the banks and other public institutions given the palatable titles of ‘downsizing’ and ‘right-sizing’, only added to the army of jobless workers.

(9) All evidence is that the government faithfully follows what the IMF and World Bank dictate. Not so, however, in case of the agricultural tax where the provinces were left to play with the issue. The government lowered the existing tax rates and custom duties, but has miserably failed in increasing its revenues from the farm and service sectors. Against the target of Rs 81 billion, the revenue collection for the first quarter of 1997-98 was to the tune of Rs 61 billion - if, as usual, the figure is not later changed by the CBR, because certain quarters claim the real collection was not more than Rs 53 billion.

On the one hand is the dismal picture, as briefly presented above, and on the other, the rulers are not prepared to come out of their palatial abodes and their lavishly decorated secretariats. The houses, the top authorities occupy, are maintained at an exorbitant annual cost of Rs 1.7 billion (some reports say the cost was Rs 2.7 billion). These authorities also prefer private planes full of ‘sycophants’ and they roam around in cars, one of which may cost much more than a school or a Rural Health Center and Basic Health Unit. Greater bulk of the money in the exchequer that comes through hard loans and is assigned as a sacred trust to the rulers, is spent on them. The share that goes to people’s education, health, food, clothing and well-being, if compared with the "lion’s" share, makes the whole exercise of government budgeting a downright disgrace.

In a televised program the Minister for Religious Affairs informed that the government has assigned a Committee the task to suggest ways and means how to introduce the ‘Nizam-e-Khilafat-e-Rashida’. What a shame! For one, is this the way and manner to talk about a sacred goal and in a country where people are simply refused the bare minimum needs and any degree of human dignity?

The Governance Style

Just to provide a few hints how mindlessly the government policies are framed and implemented and the state affairs are administered.

Debt Retirement Programme

Soon after taking the oath, a debt retirement program (Qarz Utaro) was announced by Mian Nawaz Sharif. No one now speaks what happened to that. The Finance Minister (as reported in the press on 11th Nov’97) admitted that the nation was indebted to the extent of Rs 23 trillion - to which the ‘Qarz Utaro’, the latest devaluation and the IMF’s ESAF and EFF, have certainly made sizable contributions. The Prime Minister has, however, not given up the ‘intention’ to break the bowl.

The centralized government was certainly overloaded and every serious person wished it was ‘cut to size’. Rather than following a well-considered properly planned humane approach, the government went for merciless slashing in the banking sector. For the federal ministries and departments, it announced the ‘golden hand shake’. As indicated in the Press, the assumption was that some 10 percent of about 2.2 million employees will opt and, which will at the most, cost the government something like Rs 2 billion or so. What emerged, however, was that less than 5 percent officials tendered to avail premature retirement, but the cost now calculated worked out close to Rs 80 billion. Who is to take responsibility for this childish, rather stupid mis-calculation and the torture given to the multitude of families?

Executive-Judiciary Row

Despite clear verdict of the court in the judges case of March 1996 about filling a vacancy in the Superior judiciary within 30 days, the executive chose to sit over the letter of the Chief Justice dated August 20, about the judges elevation. Feelers were floated all around that the issue was near resolution, but it remained elusive. The government did all what it could to pressurize the Chief Justice for amending his recommendation, though it would have been clear to the meanest intelligence that the Chief Justice if he did so would have destroyed the judgment he had himself authored and compromised the independence of judiciary he has been fighting for. If the executive had its reservation on any nomination, it could spell it out in writing in terms of the judgment. By skipping over the procedure laid down, the government was only lingering the issue to the detriment of the polity. When Benazir Bhutto took on the judiciary in 1996, Nawaz Sharif was all eloquence in denouncing her action but when himself in the seat of power he was doing the same without qualms and perhaps more crudely. He talked loudly about the power of the parliament to fix the number of judges. The unfortunate part of the whole issue was that it involved not a point of principle but perhaps personal likes and dislikes. It has already been hinted in the press that the rulers did not like some of the nominees of the Chief Justice elevated to the apex court because, in their perception, they were difficult and all the prevarication was on that ground.

While everything seemed set for a protracted war of nerves, with the government flexing its muscle to clip the judiciary, somehow wise counsel prevailed over the government side and Nawaz Sharif, on the floor of the House (Oct. 31) declared that he, in the larger interest of the country, had agreed to implement the recommendation of the Chief Justice about the appointment of 5 Supreme Court Judges. This was the anti-climax to the high tension drama staged on the political stage for over two months. A Greek tragedy in which the protagonists fail to draw any lesson until after their mutual distraction, was at last averted, but certainly at a very high cost, political and economic. Premier Nawaz Sharif could have acted this way two months earlier without damaging his image. The useless tussle has only proved the poor imagination of the ruler and their immature bunch of advisors and made an example of very bad governance.

Census

Constitutionally, we are bound to conduct census every ten years; the latest was due in 1991. Nawaz Sharif and Benazir both have, during this period, ruled the country. None could, however, decide about an important national issue, which impacts many other areas - most notable being due representation in the national assembly, resource allocation among the provinces and the economic planning. The present government had announced and the preparations were made to undertake the exercise in October,1997, yet deferred it in the name of illegal settlers, which only showed its lack of authority or proper planning. The real problem seems to be the apprehension of the landed aristocracy, which feels it will loose the hold, as the population weightage seems now favoring the urban sector. It also got proved that an industrialist urban-based Premier cannot stand against the combined strength of ‘jagirdars’ who dominate even his own party.

Pak - India Dialogue

As an example of bad governance and poor conception, we may refer to government’s efforts in the area of Pak-India relation. Ironically we were loosing life-long friends like China and Iran; our hold was subsiding in Afghanistan; we were unable to persuade the U.S. to be more friendly on issues so vital to us, yet the government was so eager and impatient to win over the 1000-years old antagonist. And, what did we achieve at the end of the day? Simply nothing. The Foreign Office now submits there was little chance of serious dialogue with India. But this was all well known and foretold. Why could not the government pursued a more realistic and fruitful policy? You cannot compete the ‘banya’ in trade and commerce, Sir! The nation needs to look for means more appropriate and effective, and the first is to bring forth a determined leadership, which could correct the whole gamut of governance, currently rotten to the core.

The Way Out: Economic Policy Objectives and Goals

The very genesis and the founding ideology of Pakistan warrant that those who rule this country should be fully committed to the sincere and effective pursuit of the guiding principles as ordained by Allah S.W.T. and His Prophet (p.b.u.h.). As a natural consequence, political power and decision-making must remain subservient to and always working within the framework of Shariah, through the established norms of mutual consultation (shura). No one be ever allowed to arrogate to himself the right of exclusive rule or personal discretion. People must have the right to question the conduct of the rulers and to seek and obtain remedies for wrongs committed by them. Inter-alia, the right to property, if it is ‘halal’, and free association must be guaranteed.

Within these broad parameters, the Islamic economic system is to be based on social justice, equity, moderation and balanced relationship. It is a universal system embodying eternal values which safeguard man’s rights while constantly reminding him of his obligations to himself and to society. It forbids all forms of exploitation and honors labor, encourages earning one’s living by honest means, and to spend his or her earnings in a rational way. Its salient features are:

(a) All natural resources are a Trust (Amanah) from Allah and man is individually and collectively custodian (Mustakhlif) of these resources. Man’s economic effort and its reward are determined within the context of this framework of trust.

(b) Wealth must be acquired through effort and by lawful means. It should be saved, retained and used only in ways approved by Allah S.W.T. and His Prophet (p.b.u.h.).

(c) Wealth must be justly distributed. When personal wealth has satisfied the legitimate needs of its owner, the surplus is required (voluntarily) to satisfy the needs of others. The state policies and programs should ensure the flow of wealth from the rich to the poor persons and sections of the society.

(d) All resources available must always be put to optimum use; no one has the right to hoard them or to keep them idle, or to squander them or to use them for wanton display, be it the individual, the community or the state.

(e) Development and growth are essential requirements, and participation in economic activity is obligatory for every Muslim. He must labor hard, and always seek to produce more than is necessary for his personal needs, because then alone would he be able to participate in the process of Zakat and to contribute to the well-being of others.

(f) Every worker is entitled to a fair recompense for his or her work. There must be no discrimination based on race, color, religion or sex. Merit must always be based on qualification, level of skill and experience, which are also to determine the wages.

(g) The procurement of wealth and the production of goods must be lawful in terms of the Shariah. Usury (riba), gambling, hoarding, etc. are forbidden sources of income, both at the individual and society level.

(h) The principles of equality and brotherhood require the just sharing of resources in prosperity as well as in adversity. Zakat, Sadaqat, Al’Afw and inheritance are some of the means for the equitable distribution of wealth and resources in society. Modern tools and instruments (tax, subsidy, rebates) can also be employed as long as these are not in conflict with Shariah and conform to ‘Ma’roof.

(i) Persons incapable of looking after their own needs, owing to permanent or temporary incapacity, have a just call upon the wealth of society. They are the responsibility of society which must ensure supply of basic necessities of food, clothing, shelter, education and health care to all of them, irrespective of their age, sex, color or religion.

(j) The economic strategy should be structured in such a way that there is cooperation and sharing within the Ummah and maximum self-reliance therein.

Strategy of Self-Reliance

Crucial to the approach of self-reliance is the need for a radical departure from the current practice of aid-based and loan-based development. Looking at Pakistan’s more than four decades experience, it is our considered view that suspension of the foreign aid and even private foreign investment would prove a blessing. The term ‘aid’ was a simple misnomer, because very little come as a grant and that too wasted in the name of consultancies. The bigger portion was always loan, mostly on market terms, further wrapped into conditionalities. Being mostly tied, the amounts thus received cannot be utilized according to our own preferences and national priorities, nor we can go to the cheapest market for supplies. The stage has reached that soon the loan received will almost totally be consumed for debt-service. The net contribution which is already nominal will be zero or even negative.

In the changed geo-political situation, it should not have been difficult for us to realize a few years back, that expecting financial support on terms softer and acceptable was imprudent on our part. As a nation, therefore, we have no option but to go for self-reliance.

Doubtless, we must have friendly relations based on mutual respect, with all countries of the world, yet we must get rid of dependence. We accept and regard the difference between self-reliance and autarky or isolation. Ideologically also, it must be realized that Islam is very sensitive on the issues of independence, sovereignty, honor and self-respect. A people dependent economically, intellectually, technologically and scientifically cannot be expected to provide leadership to the humanity at large - a role very specifically ordained by God Almighty to the Muslim Ummah.

Self-reliance, as we understand, is a condition in which a nation makes free and voluntary choices in the disposition of its resources and output and in setting its economic and political priorities. This state of affairs is totally distinct from a situation where decision-making is constrained by a political or economic situation dictated by external compulsions. Self-reliance signifies the capacity and capability of the country to face any crisis on the basis of its internal strength. This is possible if the economy can maintain equilibrium on the basis of commercial transactions including trade and capital movements. In short, it implies self-confidence and the capacity of autonomous goal-setting and decision-making, rejecting all forms of dependence, invited or imposed.

The program to achieve self-reliance would have to be multi-dimensional. One of the dimension - and most important one - is that the government would have to curtail conspicuous consumption and appropriate its size and its expenditures. There is need to enact law that puts ceiling on both budgetary deficit and deficit financing, which over the years have become permanent features of our budget exercise.

There is urgent need to significantly reduce the size of the government, whose all-pervasive presence in the country’s economic life has only added to the dependence on external sources and powers. Yet, as noted earlier, we need to be very careful not to go for the cruel methods employed , for instance, in case of the banking sector, or resort to the foolish policy of golden handshake, which could only end up in total brain-drain. Development plans would also need total restructuring, assigning many economic chapters to the private sector. Tax reforms, a rational tariff policy, switching over from interest system to an equity-based mode of financing are some other essential features of the new strategy. To begin with the process, a cut-off date has to be fixed to eliminate ‘riba’ from the economy prevailing in any form and in any sector. We need to seriously introduce the alternative modes of financing now being extensively employed in some Muslim, and even, non-Muslim countries and which have been thoroughly documented - latest being the government’s own Commission for the Islamization of Economy.