I'm creating this thread to discuss and propose solutions for permanently solving Pakistan's economic problems. In the 1960s, countries like South Korea used to study Pakistan's economic and industrial progress to model their own industries after. But today, Pakistan's economy lies in tatters while Asia leaps ahead.
In essence, this thread is about saving Pakistan from its own internal problems that are threatening its very survival today.
So what can be done? How can we save Pakistan's economy, thereby saving Pakistan? How can we contribute to an economy that serves the majority of Pakistan's people, by lifting their living standards and improving their quality of life?
To start it off, I present a few points about the economy:
1. Tax and Fiscal problems
The tax base should be broadened to include all of Pakistan's citizens. Currently, only a narrow minority of salaried individuals pay tax, that too in the public sector.
See List of countries by tax revenue as percentage of GDP - Wikipedia, the free encyclopedia
The agriculture sector and most of the private sector doesn't pay income tax. We need to get national consensus to tax agriculture and business for the survival of Pakistan.
Unfortunately, the problem here is that the rich of Pakistan don't see others, or those poorer than them, as their fellow citizens. There is a lack of concept of nationhood, and the rich don't want to pay for the public services for the poor.
Hence nobody wants to pay tax, because they don't want to pay for "free" services for the rest of their countrymen. This perverse mentality has to change.
To make up for the lack of income tax, the government charges sales tax, octroi etc. This burdens the common man. This also must stop. VAT or sales tax cannot be a substitute for income tax. This practice of taking from the poor, and giving to the rich must stop.
All states collect tax. Else, they have no right to be a state. It is as simple as that.
2. Natural resources, exploitation, and nationalization thereof.
Pakistan is a country of overwhelming natural wealth.
Gold deposits in Baluchistan are worth billions of dollars. http://en.wikipedia.org/wiki/Reko_Diq
Reko diq has over 20 million ounces of gold at the minimum.
Imagine if all that gold could be extracted and put into Pakistan's national treasury. Pakistan would be one of the richest countries in the world.
Coal is also found in abundance. Thar coal has one of the largest coal reserves in the world.
Natural sources of Baluchistan, Sindh and Pothowar have not been explored properly.
Pakistan's natural resources should ideally be nationalized. The Pakistan government must have full control over its natural resources, and these in turn must be distributed to the national treasury, to in turn be used on the citizens of Pakistan.
If international companies or local private companies are employed to extract and resell these resources, then the terms of business must be on a scale that is overwhelming in favour of Pakistan's government and treasury.
International companies tend to buy cheap and sell high. Africa is replete with examples of exploitation of local populations for cheap minerals. Gold mining, diamond mining, are all industries where international companies have preyed on local natural resources, without local people getting their fair share. Africa's people have remained poor, despite great natural resources.
This must not happen to Pakistan.
Neither must corrupt governments like Zardari's be allowed to steal Pakistan's gold and natural resources. Perhaps, one of the prerequisites to mineral exploitation is an honest government. Perhaps that is one of the impediments in the achievement of this ideal.
If properly developed, Pakistan's gold deposits could place it in a league of nations to surpass the wealth of Saudi Arabia, UAE, etc.
But these must be used for Pakistan's betterment, not stolen and sent abroad by corrupt governments and intl. corporations.
3. Pakistan's human resources
The human resources of Pakistan are grossly underdeveloped, with one of the lowest literacy rates in the world.
We need to improve Pakistan's literacy and education on a war footing. From this we must learn from such countries as South Korea, Malaysia, and Sri Lanka.
Unfortunately, education of the masses is deliberately prevented by the feudalist-dominated government of Pakistan.
Feudals view public education as a threat to their power, because educated, enlightened and empowered people demand rights. And these rights are a threat to the entrenched power structure of the feudal elite.
The feudals must be told in no uncertain terms by the people that this state of affairs is unacceptable. Education is a right for every Pakistani.
In essence, this thread is about saving Pakistan from its own internal problems that are threatening its very survival today.
So what can be done? How can we save Pakistan's economy, thereby saving Pakistan? How can we contribute to an economy that serves the majority of Pakistan's people, by lifting their living standards and improving their quality of life?
To start it off, I present a few points about the economy:
1. Tax and Fiscal problems
The tax base should be broadened to include all of Pakistan's citizens. Currently, only a narrow minority of salaried individuals pay tax, that too in the public sector.
See List of countries by tax revenue as percentage of GDP - Wikipedia, the free encyclopedia
The agriculture sector and most of the private sector doesn't pay income tax. We need to get national consensus to tax agriculture and business for the survival of Pakistan.
Unfortunately, the problem here is that the rich of Pakistan don't see others, or those poorer than them, as their fellow citizens. There is a lack of concept of nationhood, and the rich don't want to pay for the public services for the poor.
Hence nobody wants to pay tax, because they don't want to pay for "free" services for the rest of their countrymen. This perverse mentality has to change.
To make up for the lack of income tax, the government charges sales tax, octroi etc. This burdens the common man. This also must stop. VAT or sales tax cannot be a substitute for income tax. This practice of taking from the poor, and giving to the rich must stop.
All states collect tax. Else, they have no right to be a state. It is as simple as that.
2. Natural resources, exploitation, and nationalization thereof.
Pakistan is a country of overwhelming natural wealth.
Gold deposits in Baluchistan are worth billions of dollars. http://en.wikipedia.org/wiki/Reko_Diq
Reko diq has over 20 million ounces of gold at the minimum.
Imagine if all that gold could be extracted and put into Pakistan's national treasury. Pakistan would be one of the richest countries in the world.
Coal is also found in abundance. Thar coal has one of the largest coal reserves in the world.
Natural sources of Baluchistan, Sindh and Pothowar have not been explored properly.
Pakistan's natural resources should ideally be nationalized. The Pakistan government must have full control over its natural resources, and these in turn must be distributed to the national treasury, to in turn be used on the citizens of Pakistan.
If international companies or local private companies are employed to extract and resell these resources, then the terms of business must be on a scale that is overwhelming in favour of Pakistan's government and treasury.
International companies tend to buy cheap and sell high. Africa is replete with examples of exploitation of local populations for cheap minerals. Gold mining, diamond mining, are all industries where international companies have preyed on local natural resources, without local people getting their fair share. Africa's people have remained poor, despite great natural resources.
This must not happen to Pakistan.
Neither must corrupt governments like Zardari's be allowed to steal Pakistan's gold and natural resources. Perhaps, one of the prerequisites to mineral exploitation is an honest government. Perhaps that is one of the impediments in the achievement of this ideal.
If properly developed, Pakistan's gold deposits could place it in a league of nations to surpass the wealth of Saudi Arabia, UAE, etc.
But these must be used for Pakistan's betterment, not stolen and sent abroad by corrupt governments and intl. corporations.
3. Pakistan's human resources
The human resources of Pakistan are grossly underdeveloped, with one of the lowest literacy rates in the world.
We need to improve Pakistan's literacy and education on a war footing. From this we must learn from such countries as South Korea, Malaysia, and Sri Lanka.
Unfortunately, education of the masses is deliberately prevented by the feudalist-dominated government of Pakistan.
Feudals view public education as a threat to their power, because educated, enlightened and empowered people demand rights. And these rights are a threat to the entrenched power structure of the feudal elite.
The feudals must be told in no uncertain terms by the people that this state of affairs is unacceptable. Education is a right for every Pakistani.
