1/25/23, 10:26 AM Arise Pakistan

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Discuss important measures to save energy in Pakistan.

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Arise Pakistan
Numerous immediate measures could be listed to save energy and stop imports that we can live without

Naeem Sadiq January 24, 2023 

Question: Suggest some remedies for reviving economic crisis in Pakistan

The writer is an Occupational Health & Safety professional also engaged in writing and advocacy on social issues. He can be reached at naeemsadiq@gmail.com and tweets @saynotoweapons

Pakistan has not run out of dollars. It has run out of ideas,
imagination, consensus and common sense. Limitless options and
opportunities await Pakistan to rise from its deep slumber.
Numerous immediate measures could be listed to save energy and
stop imports that we can live without. Import of fuel — which
makes the biggest chunk of imports — can be significantly reduced
by numerous fuel-saving measures. Withdraw all 150,000
government vehicles from every government official. Retain only
about 5% of these cars in central car pools in each department — to
be used only when specifically requisitioned for a specific official
task. If the entire civilised world can follow this principle, why not
a nation on the brink of default! Completely eliminate all fuel
entitlements — ranging between 60 and 600 liters per month — for
all federal and provincial ministers, parliamentarians, judges and
civil and military officials.

Numerous other energy conservation measures can be initiated. Close all

markets at 6pm. Withdraw all air conditioners and TV sets from government
offices. This could save electricity, time and energy bills worth Rs10 billion per
year. A four-day work week could bring additional 15% saving on all
government utility expenses. Vehicles above 1000cc should pay a toll tax at a
rate proportional to the size of the car. This can be easily done by installing
cameras on main roads and intersections that recognise the QR code of each
passing vehicle and transmit the information for automatic invoice generation.
Afghan Refugees Problem:
Around 15,000 Afghan nationals cross from Pakistan to Afghanistan every
day. Each person is legally allowed to carry $1000. Considering that many
manage to smuggle far more than the authorised quota, Pakistan conveniently
ends up losing $15-30 million each day. Pakistan could save this amount by
eliminating dollar authorisation and permitting Afghan citizens to carry back

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Afghan or Pakistan currency only. Closing down all commercial money

exchange outlets, permitting exchange and transfer of forex through banks
only, curtailing the authorisation for Pakistanis travelling abroad to $2000
and creating incentive schemes for efficient money transfer through banking
channels instead of hundi could significantly increase availability of the dollars
in Pakistan.
launch and encourage import substitution:
A sane government would launch and encourage numerous import
substitution programmes. The annual import of $4 billion worth of palm oil
could be completely eliminated and replaced by numerous home-grown
cooking oils such as sunflower oil, mustard oil, soya bean oil, rice bran oil,
canola oil, corn oil, mustard oil, cotton seed oil, sesame oil, etc. Pakistani
markets are flooded with Chinese home-use electrical equipment such as
electric heaters, kettles, toasters, tools, drill machines, etc. Most of these items
can be locally manufactured. Stopping this import will not just save a large
amount of forex but also boost the local industry. Import of coal worth $4-5
billion every year to run the Port Qasim, Hub and Sahiwal power plants can be
largely substituted by local Thar coal, resulting in a saving of $2-3 billion every
year. Pakistan imports over 2 million tons of hot rolled steel coil every year.
We have both people and technology to manufacture this product locally and
save over $150 per ton. That translates to a saving of $300 million per year on
just one product. Shortage of imagination and excess of bureaucracy hold back
our progress and prosperity.
Stop pampering already pampered rich class:
Pakistan could be a rich country if it stops pampering its already pampered
rich class. A train load of 76 Ministers, Advisors, Ministers of State and Special
Assistants betrays sanity and makes Pakistan poorer by Rs380 million every
month. One of the first austerity measures ought to be to slash these free-
loaders to less than 15. The practice of giving camouflaged salaries to
government officials by adding a dozen type of nebulous allowances that are
six to seven times the basic salary must be stopped forthwith. It is proposed
that all types of allowances and entitlements be abolished for all government
officials, and each individual must receive only a flat and transparent salary,
with no hidden perks.

Austerity would be welcomed by all only if initiated from the top. If Pakistan is
really sinking, as no doubt it is, then the salary of any government official —
civil, military or judicial — must not exceed Rs400,000. Likewise pensions
must be capped at Rs150,000, with absolutely no other facilities or
entitlements. Any attempts at reducing expenses would remain incomplete
unless all government organisations, including the armed forces, are tasked to
adopt exceptional austerity measures, cut down ceremonial and non-
operational expenses and voluntarily bring at least 10% reduction in their
budgets.
capitalising Tax collection:
Pakistan has failed to realise and capitalise its tax collection potential. Only
1.4% people file tax returns, of which one-third declare a zero tax liability. This
is a disaster beyond words. In 75 years, FBR has not been able to design a
simple half-page income tax form that could be filled by every citizen without
paying Rs20,000 to a tax lawyer. This simple step, beyond the comprehension
of FBR, could bring as many as 10% people within the tax net. Tax on
agriculture, wealth, inherited or gifted property and deemed income from
immovable property be immediately executed across the board.

Doubling the taxes on cigarettes, soft drinks, energy drinks and sweetened
drinks could easily fetch an extra Rs200 billion.‘Non-filer’, a uniquely
ridiculous concept that promotes a culture of tax avoidance, ought to be
completely eliminated. Purchase of property, car registration, foreign travel,
electricity bills beyond Rs10,000 per month, sending money abroad or
transactions beyond Rs50,000 ought to be prohibited if an individual is a
‘non-filer’.

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Cutting Subsidies: Imagine the recklessness of a government whose annual expenditure for
running its civilian federal government is Rs480 billion, but provides Rs700
billion as subsidies to its already pampered corporate sector. This must end.
Pakistan needs to raise the cost of piped gas to its true value i.e.
Rs1,000/mmbtu instead of artificially keeping it at Rs650/mmbtu and putting
both Sui Southern and Sui Northern under a financial debt of over Rs1,500
billion. Every sale and purchase of property ought to be taxed at the rate of 5%,
and at its correct market value. A board comprising reps from government,
Union Councils, estate agents, architects and citizens in each registrar’s
jurisdiction should verify and sign for the correct market value of the property.
Implementing these measures could lift Pakistan out of this self-created
crunch and crisis within six months. What is holding back Pakistan from its
rapid rise and revival is nothing but the ineptness and insincerity of its own
ruling elite.

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