Recent Trends in Transport Industry and State of Governance in Pakistan
Governance means efficient use of resources at hand, and achieving a target with minimum cost incurred. It sets a benchmark against which the performance is measured. An efficient system is the one that works as closer to this standard as possible. Functioning of a government in modern nation states is evaluated on this governance scale. In the matter of states, they are meant to collect taxes from citizens and in return ensure a secure, healthy and educated life for these tax payers. It makes the wheel of the economy moving yielding maximum output for the countrymen. Let’s analyze the governance system of Pakistan in the light of above stated parameters.
Pakistan stands very low in the list of countries as for as tax collection is concerned. It means the problem starts from the very foundations of the system. Those running large scale businesses tend to apply accounting tricks that can make their incomes accounted for minimum taxes possible. The tragedy gets worse when it is coupled with a huge amount of undocumented economy that is running out of tax net. Then there are areas that enjoy tax exemptions like the income that is earned from agricultural sources. Even tragic are the majority of tax payers who are paying double taxes in the form of direct and indirect ones. This unequal system of tax yields very little for national exchequer.
A recent example of such tax evasion is evident in the cab services operating in big cities like Lahore, Islamabad Rawalpindi, and Karachi with big brand names like Uber and Careem. A good thing about this venture is that they have opened up new job opportunities in the economy, and also providing a comfortable travelling service to customers. But the tragedy is that this mega system is running without proper documentation of all the individuals working with it. Those driving the cars are paid their money after a fixed ratio is deducted by the company, from the rent paid by the passengers. All this is going on outside the proper banking system, so they avoid the tax payable on their earnings. Only thing needed to get into this service is possession of a car and in some cases that is also provided by the company on rent.
Foreign companies are taking benefits, without any authority to monitor them. Families and children are using these services without any surety of safety and quality of services offered. Regulations and standard operating procedures for inspection of cars doesn’t exist anywhere in the country to check either they are fit for passenger transport and any such usage or not. Drivers are not being registered with the relevant government authorities, nor are their background checked, while it is a normal practice in most civilized countries. Taxi cars and passengers are not insured in order to protect them and ensure safety.
This is a common reflection of how a business entity operates in this country most often. It indicates weak writ of the state institutions that have fallen prey to corrupt practices and a culture of nonprofessional ethics. This poor governance makes the country poorer while the powerful individuals get richer.
A panacea to this problem is strong implementation of law. We are among the countries with most number of written laws, but what lacks is their implementation. Taking strict actions against the culprits can make every one fall in line. Efficient fiscal and monetary policies coupled with their effective execution can improve the standard of governance in the country. And there is no doubt that the masses will be the ultimate beneficiaries, with an enhanced standard of living of society as a whole.
