He told Dawn in confidence how he dodges all utilities, ducks custom duties and evades taxes with the help of an able tax consultant.
“I am not ashamed of what I do not pay, rather regret whatever little I was made to pay in the name of multiple taxes, levies and utility charges. Besides not getting value for the money spent from either the government or water and power companies, I know that my money will not be put to any productive use. The utilities and the government are irresponsible, wasteful, inefficient and corrupt to the core”, a successful trader retorted when reminded of his responsibility as a citizen towards the country that is again in a difficult patch of its checkered history.
The economic fundamentals are not looking up as the country struggles to cope with stubborn fiscal, current account and trade deficits. The country’s foreign reserves have dwindled to precariously low levels compromising its credit worthiness internationally. The political turmoil and prolonged period of uncertainty in a difficult international environment of spiraling food and fuel prices has taken its toll. The stocks are falling like stone, down over 40 per cent during the current calendar year. The currency value is at all time low, now flirting with Rs80 to a dollar in kerb. Inflation is high and food prices have risen in geometrical proportions.
There is no denying the fact that the government alone cannot put things right. It would need support and confidence of the business and the people to pull the country out of the current economic quagmire.
Most analysts feel that the government would have to mobilise and energise economic agents to invest in the development, by establishing its own creditability.
“Passionate appeals would not work as the people are comparatively better informed and the government will now be required to move beyond claims, and prove itself to be clean and efficient to be able to exercise its writ and capitalise on the inherent strength of men and natural endowments”, a senior economist commented.
“To beat the impact of the whispering campaign about the questionable credentials of politicians, high government functionaries and leading politicians should declare their assets and explain if necessary sources of their accumulated wealth to come clean on what they claim to be drummed up charges of corruption initiated by their opponents to smear their public image”, said another economist.
The Musharraf government did the right thing as they made at least their cabinet members to declare their assets when they assumed power. They, however, conveniently forgot to again declare their assets before they left to let people be their judge. Why they left their initiative half way is anybody’s guess”.
In the current environment even if we discount for political bickering, the prospects of growth of companies and businesses often depend on political connections that many corporates perceive to be a short-cut to create value. It clouds the possibility of any improvement in the corporate culture in terms of improved transparency.
The global economic research on the issue demonstrates that well connected firms tend to be less inclined to build on efficiency and market strength. Currently, after Musharraf the business elite is busy in realigning itself, discovering new patrons and investing in new relationships.
The fact is that the relationship-based systems in the corporate and the government will have to be replaced by the institution based and market-driven system firmly rooted in the rule of law for the economy to grow on a sustainable basis.