Following the general elections of February 8, 2024, Pakistan Muslim League (Nawaz)—PMLN— emerged as the leading party in Punjab. With this victory, Maryam Nawaz Sharif became the first female Chief Minister of the most populous province of Pakistan, though serious doubts casted about her winning credentials. Maryam Nawaz, political heir of three-time prime minister of Pakistan and leader of PMLN, appears resolute to improve governance for Punjab’s 127.66 million denizens. The common people are eagerly waiting for fulfilment of her promised initiatives aimed at bringing much-needed economic reliefs amid extreme hardships in a province long ruled by her family dynasty.
The time will tell how the first female Chief Minister of Punjab, despite the formidable challenges in governance, economy, and political stability, steer Punjab towards an era of prosperity and sustainable inclusive growth. It is possible only with a vision centered on the welfare of the common people, pro-growth policies, and resilient initiatives. The developmental efforts cannot be implemented with anti-people colonial bureaucratic structure that is insensitive to diverse needs of the populace. For fostering equitable progress, a paradigm shift is required in policies coupled with structural reforms ensuring active participation of the masses. The elitist governance structure with tax-free perks and benefits and VIP culture needs to be dismantled without any further delay.
Maryam Nawaz in Punjab’s financial budget for the ongoing fiscal year 2023-24 has tried to address multiple challenges such as infrastructure development, education, healthcare, agriculture, social protection, and digitalization. The question is that of implementation through inefficient and corrupt machinery for which no reforms agenda exists. Throughout the budgetary process, the primary objective of new Chief Minister remained clear to fortify the major pillars of provincial economy, prioritize the welfare of vulnerable segments of society through enhanced initiatives, and strategic investment for better future. For leapfrogging through human resource development in innovative technology sectors, especially IT/AI, little intention is paid till oday.
With a financial outlay of Rs. 48 trillion, the Punjab Government anticipates a positive fiscal balance of Rs. 602 billion. It estimates receiving over Rs. 2.7 trillion from the federal divisible pool under the National Finance Commission (NFC) award, but there is no plan to tax the rich to generate own resources for enhanced welfare spending to improve human resource. The plan of 25 percent increase in provincial revenues, both tax and non-tax sources, is through oppressive taxation/levies, generating approximately Rs. 625 billion, while potential of agricultural income tax on the richest one percent absentee landowners alone is over Rs. 250 billion.
PMLN claims that development and growth have consistently been prioritized by it, with a strong focus on enhancing infrastructure, which serves as the cornerstone of economic progress. The current budget allocates significant funds towards the construction and upkeep of roads, bridges, and transportation networks. There is hardly any focus on human development. The investments in infrastructure without vibrant modern city model cannot generate required employment opportunities, and stimulate economic activity throughout the province. Though 147.4 billion rupees are allocated for roads and initiatives such as the farm-to-market programme the rural areas lack even basic facilities like clean drinking water.
Additionally, Rs. 320 billion, earmarked for the Roads Rehabilitation Programme (Phase-II), covers 82 road networks spanning 2,659 kilometers. This investment claimed to be for fostering “sustainable development and prosperity” represent lop-sided approach as millions of children are outside school and there are no plans to integrate infrastructure improvements with human development. Though the government acknowledges the vital role of education and healthcare sectors in public welfare, yet cannot provide well trained and dedicated teachers even in primary schools. No doubt that increased allocations are allocated on papers for schools, colleges, and universities with clichés “to ensure equitable access to quality education for every child in Punjab”, but fact remains that we have outdated curriculum at each level of education with no impartment of skills. The college and universities are nothing but just “degree factories”—issuing useless paper testimonials not recognised anywhere in the world.
Education and healthcare are fundamental pillars of human development. Rs. 595 billion is kept for education sector. This includes Rs. 537 billion for non-development expenditure, constituting 26 percent of the total non-development budget. Additionally, Rs. 57 billion are earmarked for the development of the education sector, comprising 9 percent of the total development budget. In the health sector, the government has allocated Rs. 473 billion for non-development expenditure and Rs. 115 billion for development, accounting for 18 percent of the total developmental budget. Will these big numbers translate in any betterment in vital areas of education and health pose a serious question mark due to known leakages and inefficiencies in the machinery that has to spend the funds?
The government has intensified its focus on healthcare, unveiling plans to establish a cutting-edge Institute for Cancer Treatment and Research in Lahore with a total outlay of Rs. 30 billion. Additionally, Rs. 500 million has been earmarked for this project in the current fiscal year. Furthermore, an allocation of Rs. 10 billion has been made for Nawaz Sharif Institute of Cardiology in Sargodha. There is a plan to launch an air ambulance service for motorway accident victims. For overhauling the Health Insurance Program/Sehat Card, Rs. 45 billion are allocated. Moreover, Rs. 4 billion is allocated for the development/revamping of district headquarters (DHQs), while Rs. 40 billion for the development/revamping of basic health units (BHUs) and rural health units (RHUs). These initiatives for enhancing healthcare accessibility and quality across the province are laudable but real conditions at these places are deplorable.
Agriculture plays a vital role in both our local communities and the national economy. To bolster this sector and support farmers, the government has allocated Rs. 79 billion, introducing schemes and providing subsidies for seeds, fertilizers, and modern farming techniques. In a recent development, Chief Minister Maryam Nawaz approved the issuance of the Kisan Card, benefiting 500,000 farmers annually with loans totaling Rs. 150 billion under relaxed terms. This initiative, known as the ‘Nawaz Sharif Kisan Card’ scheme, aims to provide farmers with access to agricultural loans of up to Rs. 30,000 per acre. These loans to farmers to purchase quality seeds, fertilizers, and pesticides, cannot enhance crop yields and agricultural productivity unless they are trained in natural scientific processes and techniques highlighted time and again by Asif Sharif under his Pedaver programme. The government must engage him for the welfare and prosperity of the farmers.
The Chief Minister of Punjab is undoubtedly committed to steering the province towards growth and prosperity. However, it is evident that traditional governance methods pose challenges that cannot be effectively addressed. Overreliance on bureaucratic structures, lacking in public representation, hinders desired outcomes. Initiatives like the distribution of Ramadan packages, the Clean Punjab campaign, and providing affordable groceries aim to support the less fortunate amid high inflation. Yet, the selection process for Ramadan packages raises concerns about reaching the intended beneficiaries.
Additionally, complaints persist regarding the availability and pricing of essential grocery items, with many facing stock shortages or unaffordable prices. Despite the Clean Punjab initiative, concerns persist regarding the cleanliness of Lahore, and smaller cities continue to grapple with cleanliness issues. To address these challenges effectively, the Chief Minister must embrace a transformative governance approach, utilizing technology and implementing change management strategies. Moreover, fostering greater reliance on local government and political representatives could lead to more effective and responsive governance, ultimately achieving the desired results for Punjab’s development and welfare.
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Dr. Ikramul Haq, Advocate Supreme Court, specialises in constitutional, corporate, media and cyber laws, ML/CFT, IT, intellectual property, arbitration and international taxation. He holds LLD in tax laws with specialization in transfer pricing. He was full-time journalist from 1979 to 1984 with Viewpoint and Dawn. He served Civil Services of Pakistan from 1984 to 1996. He established Huzaima & Ikram in 1996 and is presently its chief partner as well as partner in Huzaima Ikram & Ijaz.
He studied journalism, English literature and law. He is Chief Editor of Taxation. He is country editor and correspondent of International Bureau of Fiscal Documentation (IBFD) and member of International Fiscal Association (IFA). He is Visiting Faculty at Lahore University of Management Sciences (LUMS) and member Advisory Board and Visiting Senior Fellow of Pakistan Institute of Development Economics (PIDE).
He has coauthored with Huzaima Bukhari many books that include Tax Reforms in Pakistan: Historic & Critical Review, Towards Flat, Low-rate, Broad and Predictable Taxes (revised & Expanded Edition, Pakistan: Enigma of Taxation, Towards Flat, Low-rate, Broad and Predictable Taxes (revised/enlarged edition of December 2020), Law & Practice of Income Tax, Law , Practice of Sales Tax, Law and Practice of Corporate Law, Law & Practice of Federal Excise, Law & Practice of Sales Tax on Services, Federal Tax Laws of Pakistan, Provincial Tax Laws, Practical Handbook of Income Tax, Tax Laws of Pakistan, Principles of Income Tax with Glossary and Master Tax Guide, Income Tax Digest 1886-2011 (with judicial analysis).
He is author of Commentary on Avoidance of Double Taxation Agreements, Pakistan: From Hash to Heroin, its sequel Pakistan: Drug-trap to Debt-trap and Practical Handbook of Income Tax. Two books of poetry are Phull Kikkaran De (Punjabi 2023) and Nai Ufaq (Urdu 1979 with Siraj Munir and Shahid Jamal). He regularly writes columns for many Pakistani newspapers and international journals and has contributed over 2500 articles on a variety of issues of public interest, printed in various journals, magazines and newspapers at home and abroad.
Twitter: DrIkramulHaq
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Abdul Rauf Shakoori, Advocate High Court, is a subject-matter expert on AML-CFT, Compliance, Cyber Crime and Risk Management. He has been providing AML-CFT advisory and training services to financial institutions (banks, DNFBPs, Investment companies, Money Service Businesses, insurance companies and securities), government institutions including law enforcement agencies located in North America (USA & CANADA), Middle East and Pakistan. His areas of expertise include legal, strategic planning, cross border transactions including but not limited to joint ventures (JVs), mergers & acquisitions (M&A), takeovers, privatizations, overseas expansions, USA Patriot Act, Banking Secrecy Act, Office of Foreign Assets Control (OFAC).
Over his career he has demonstrated excellent leadership, communication, analytical, and problem-solving skills and have also developed and delivered training courses in the areas of AML/CFT, Compliance, Fraud & Financial Crime Risk Management, Bank Secrecy, Cyber Crimes & Internet Threats against Banks, E–Channels Fraud Prevention, Security and Investigation of Financial Crimes. The courses have been delivered as practical workshops with case study driven scenarios and exams to insure knowledge transfer.
His notable publications are: Rauf’s Compilation of Corporate Laws of Pakistan, Rauf’s Company Law and Practice of Pakistan and Rauf’s Research on Labour Laws and Income Tax and others.
His articles include: Revenue collection: Contemporary targets vs. orthodox approach, It is time to say goodbye to our past, US double standards, Was Due Process Flouted While Convicting Nawaz Sharif?, FATF and unjustly grey listed Pakistan, Corruption is no excuse for Incompetence, Next step for Pakistan, Pakistan’s compliance with FATF mandates, a work in progress, Pakistan’s strategy to address FATF Mandates was Inadequate, Pakistan’s Evolving FATF Compliance, Transparency Curtails Corruption, Pakistan’s Long Road towards FATF Compliance, Pakistan’s Archaic Approach to Addressing FATF Mandates, FATF: Challenges for June deadline, Pakistan: Combating the illicit flow of money, Regulating Crypto: An uphill task for Pakistan. Pakistan’s economy – Chicanery of numbers. Pakistan: Reclaiming its space on FATF whitelist. Sacred Games: Kulbhushan Jadhav Case. National FATF secretariat and Financial Monitoring Unit. The FATF challenge. Pakistan: Crucial FATF hearing. Pakistan: Dissecting FATF Failure, Environmental crimes: An emerging challenge, Countering corrupt practices .
Twitter: Adbul Rauf Shakoori
The recent publication, coauthored with Huzaima Bukhari, is.
Pakistan Tackling FATF: Challenges & Solutions
available at: https://www.amazon.com/dp/B08RXH8W46
