Unjust country is unsafe country.
By: Tarique Khan Javed
President, Overseas Pakistani Investors Forum.

______________________________________________________________________Dated 12 Feb 2009
All neighbours are better than us:
Pakistan’s neighbours have all carried out fundamental reforms over the last 60 years which have transformed these societies to much equitable and just societies than they were before. China under Communist revolution (1949) redistributed all land equally and guaranteed basic needs. Iran under Islamic revolution ( 1978-88) allowed its citizen to redistributed land equally, even more than one house was taken away and given to needy, 80% shares of factories and businesses were given to employees and  State ensured food security. Afghanistan under Socialist Sour Revolution (1978) redistributed land to landless peasants. Taking it away from former land lords for the first time in 1,000 years. Reaction is still going on in the form of Islamic resistance but peasants are not ready to give up their gains. Northern Alliance represents them while Taliban and Al Qaeda are fighting on behalf of former Land Lords who were all Pakhtoon. This has divided Afghanistan into two. One in the North and West controlled by Northern Alliance of former depressed tribes like Hazaras, Tajiks, Nouristanis and Uzbuks, which is peaceful and rest mainly South and East controlled by Pakhtoon /Taliban/Al Qaeda which is restless and at war.  In India sweeping land reforms as promised in 1937 by Congress saw the end of all Jagirdars, Nawabs and large land Lords, after independence in 1947. Tough taxation regime was introduced to ensure transfer of wealth from rich to poor. Rich are afraid to show off wealth and society is fairly flat in terms of standards of living.

Pakistan safe heaven for Land Lords, Sardars and Rich:
In the middle of these countries is Pakistan were independence and a separate country translated to escape from reforms carried in India in 1947. Ayub Khan redistributed land which benefited 186,000 families while Z.A.Bhutto’s reform benefited just 76,000 families. Therefore the old land holding pattern as created by the British; in which it was a stated policy of the State that  poor should be kept poor to provide labour force for the rich farmers still holds true. During British rule the irrigated land in Punjab increased from 4,000 to 44,000 acres and in Sindh the Sukkur barrage threw in 7,000 new irrigated lands. The distribution of new land was done on commercial terms or for meeting the needs of British army. Thus new land either went to existing land lords or to army recruiters, ex servicemen, informers, horse, camel and donkey breeders and suppliers. Most of the very large tracks were given to breeders.

After invention of motor vehicles in 1920s the allocation to breeders should have been cancelled but it was not done. These allocations continue till date while numbers of landless peasants continue to rise. Two half hearted land reforms have failed to match the redistribution as carried on by the neighbours and therefore there is no difficulty in understanding why we have so much violence and unrest in our country.

Non inclusion of PATA and FATA in Pakistan:
In the case of PATA and FATA millions of people were left at the mercy of Malik’s, Landlords, Foreign terrorists and criminals from all over the world. Government in order to save money on police, education, health, road construction and external security did not extend its rule in the area despite pleas by the local residents to do so. Now they are being killed from all side. Why should we expect peace in this area?

Area with similar topography and also resided by Pukhtoon in upper Baluchistan are most peaceful, as they were incorporated in British Empire, without cost consideration. Once occupied such territories are very easy to control with the help of law abiding citizen due to limited entry and exit points. The citizen who enjoy benefit of settled life never look back to law less days as prevailing in FATA.

State’s tools of oppression:
1. Crush farmers:
The stated policy of the State is to keep farmers poor by depressing their produce’s prices so that city dwellers can get cheap food and raw material. Therefore even when cities saw relative prosperity rural areas remained extremely poor. Sixty percent poverty in the Country rests in the rural areas no wonder this is the rich recruiting ground for terrorist organisations.

2. Keep city workers landless and poor:
In the cities no serious attempt was made to provide cheap and state assisted housing for the migrant labour. In open spaces when these workers build their houses, such houses are regularly demolished sweeping away their hard earned wealth. No wonder the dwellers of these non permanent housing clusters (Kachi Abadies) provide all the rioters given an excuse like murder of Benezir. Kachi Abadies are not regularized on one pretext or other. Even PPP government is unable to obtain NOC from Federal Agencies like Railway, Customs etc or even Provincial Revenue Board and people continue to suffer in uncertainty. Since March 2008 no significant development has taken place. If PPP government fails to deliver residents of these localities will loss all hope.

3. Put 80% Tax burden on the poor:
Since inception all budgets have targeted poor for tax collection in the form of indirect taxes while direct tax on the rich remains small. Compared to 99% people paying direct taxes in countries like Canada, in Pakistan only 1% people pay direct taxes. Indirect tax like custom, excise and sales tax contribute bulk of tax revenue, the incidence of which is very heavy on the poor and much lighter on rich. This measure insures that rich become richer while the poor gets poorer with the passage of time. The policy is in sharp contrast to practice in civilized and humane societies.

4. Keep inflation high as an additional tax:
Successive governments including the PPP governments have resorted to borrowing from State Bank by asking them to print extra notes. The barbaric inflation as a consequence is additional taxation on the people. Current rate of inflation at around 25% is the second highest in the World next to Zimbabwe. Inflation in India and Bangladesh is within 10% range. No wonder 33% people in the country today cannot get two basic meals every day.

5. Denial of basic education and healthcare:
Very basic education and healthcare is not affordable by bulk of the population. Even clean drinking water is not available to much of the population leading to poor health and early deaths. Lack of education helps the rulers and rich to continue their exploitation without questions being asked. Lack of state healthcare means that on set of one major illness in family sweeps away any saving in the family making them once again dependent of rich boss. This tool is key to keeping common people in poverty trap. If this goes over time families will come out of it.
 
6. Expensive justice system:
Country’s courts are so slow and expensive that it is out of reach of common men no wonder people of Swat want an alternative Islamic Courts while bulk of the rural population prefer to obtain justice through ‘Jhirga system’ which dispense justice fast.
Currently it is possible to win any case with the help of money by dragging a case so long that the poor man can simply not continue to attend the hearing and give up. 

Impact of media and their duty:
The pain of all these injustices stated above is increasing with the advent of free press and electronic media. The knowledge base of even a common man is increasing rapidly as they watch hundred of national and international channels over a cup of tea in tea stalls mushrooming in small towns and villages.

Their former ignorance was a bliss given the prevailing conditions. Their new found knowledge is a curse as even after knowing all they find themselves helpless in making a change.

They see that even elected government does not address any of their issues. PPP government has not even talked about implementing the 1977 Land Reform Act pending for 31 years. Lots of talk about regularising the Kachi Abadies in towns and cities but little action so far. No change in any other injustice other than Benezir Fund. People waited for long time and hoped that PPP government will do something for them. However even this hope is fading away.  No wonder people are desperate. Media must not only highlight problems but with the help of Experts put forward solutions in very clear terms so that future elections are held on tough economic choices. The party which promises basic change in direction leading to elimination of current tools of oppression should win the next election. 

A cry for help from USA and the World:
Why should there be peace and harmony in this country when there is no justice in the country. The machinery described above work full time to maintain the status quo. As a consequence if people fall prey to well paying foreign funded terrorists, why should it shock us and others? State has full contribution in making Pakistan epic centre of World terrorism.  If World want to see a peaceful Pakistan they must play their role in eliminating the injustices that exist in Pakistan. USA brought sweeping land reform in Japan after 2nd World. They can play a crucial role in land redistribution in Pakistan as well. They can also pressurize the Government to reduce tax burden on poor and avoid inflation. Failing this, USA while fighting its war on terror, will be dragged into problems of Pakistan, for a long time, which may exhausted their resources.

Desperate times call for desperate measures.
Time has come for following actions:

• We should adopt an isolationist foreign policy and resolve to withdraw from all initiatives aimed at capturing Kashmir or Afghanistan. So that we can direct all funds towards betterment of the people. We have already spent $ 300 billion on these misadventures and gained nothing. We can not afford more.
• Implement the 1977 Land Reform Act. After that further reduction in ceiling may be debated. Ideally a maximum limit of 20 acres per family may be considered to provide land to maximum number of families without hurting productivity.
• Announce immediate inclusion of PATA and FATA into Pakistan. All facilities available to rest of Pakistan must be available to them. Cost should not be a consideration.
• Right of local population on the natural resource like oil,gas, coal as per Act of 1935 may be restored to remove injustice in Baluchistan. Such rights were taken away after discovery of Sui Gas. Such rights are still available in India and Bangladesh.
• Establish parallel Islamic Courts for family related and minor commercial cases all over the Country as already in place in Nigeria. People may choice between the British designed Courts and Islamic Courts. Both parties must agree to go to Islamic Courts.
• Make State Bank of Pakistan completely independent to ensure that inflation never crosses above one or two percent while the target should be zero. Bank should be able to deny loan request from government all the time.
• The target for indirect taxes should be only 20% of total tax collection while rest may be raised from direct taxes on rich people.

8. Immediate relief can be provided to poor by:

_________ >  Removing all Sales Tax on Electricity and Gas.
                  >  Removing  Oil and Gas development surcharges on Petrol, Gas, Diesel  and  Furnace oil.
_________> Removing all custom duty on:

• Edible oils ( between 9,000 to 16,800 per metric ton)
• Sugar 10%,
• Salt-20%,
• Peneucilline-25%,
• Bandages 20%,
• Cigarates-35%,
• Wine and Beer-90%

and all other items used by the common man. All sales Tax and Excises duties on these items can also be removed.  This will immediately bring down prices of these items and provide relief to the poor.

• Government to support agriculture produce prices by buying at international market level and not below, so that farmers get a fair return for their hard work and build a surplus to improve living condition. This will eliminate smuggling of food grains as well.
• To find employment for teeming millions, 8 Free Economic Zones(FEZ) should be established all over the country. To start with the entire coast from Korangi Industrial Area up to Kati Bandar be declared the Ist FEZ of the country. The zone may be named after Benezir. The Benezir FEZ will take care of its entire requirement like power, water etc and will be run like company. It will have its own security system with the entire area behind a high wall. Only people clearing all security clearance may be allowed in the area to ensure a safe and pleasant working environment.
• Mandatory saving scheme for Overseas Pakistanis may be introduced linked to passport renewal to direct their savings in productive investments. Bulk of their saving may be directed to development of FEZs in the form of allotment of industrial lands which will ensure a stable value. This will draw a large number of 8 million Overseas Pakistanis back to Pakistanis with their estimated               $ 800 billion wealth.
• Overseas Pakistanis may be given opportunity to investment in Government Bonds in USD, Euro, Pound at 3 to 6% above market rate, plus insurance of repatriation at end of deposit period. This will bring in a huge sum of money and will not be counted as external debt. It is estimated that Pakistanis have          $200 billion deposits in Swiss Bank accounts only. Pakistan can get rid of IMF by doing this. India avoided IMF by attracting such deposits from its Overseas citizen in late 1980s.