Rs1,000,000,000,000 is the difference between what the government of Pakistan (GOP) earns and what it spends. In effect, the GOP loses Rs300 crore a day, every single day. That amounts to loosing Rs11 crore per hour or Rs20 lakh per minute for every single minute of the entire year. The GOP would have lost Rs60 lakhs by the time you will finish reading this brief commentary. Might as well stop right here!
Rs1,000,000,000,000 is also roughly the amount by which Pakistan’s money supply is expanding per year. In effect, the GOP is printing Rs300 crore per day, every single day. That amounts to printing Rs11 crore per hour or Rs20 lakhs per minute. The GOP would have printed Rs60 lakhs by the time you will finish reading this brief commentary. And, whether you stop right here or not, the GOP will continue printing.
How do we get out of our Rs1,000,000,000,000 black hole? Consider this: Operating Expenses of the federal government Rs400 billion and losses at State Owned Enterprises (SOE) Rs400 billion – that’s 80 percent of the black hole right there. Pepco has lost Rs180 billion, PIA has lost Rs77 billion and Pakistan Steel Rs44 billion. How about an international tender to recruit the best brain available to run these hematophagous leeches?
How do we get out of our Rs1,000,000,000,000 black hole? It is budget time and Islamabad is flooded with ‘Demand for Grants’. The President of Pakistan demands Rs10 lakhs per day or Rs36 crore per year as ‘staff, household and allowances’ for 6-dozen gardeners, 175 servants and 263 household staff. The president also demands six lakhs per day or Rs22 crore per year for his foreign junkets. The Prime Minister of Pakistan demands Rs33 lakhs per day, Rs10 crore per month, Rs120 crore per year for his foreign tours. Each and every one of the ministers costs the treasury a lakh a day, Rs30 lakhs a month. That’s Rs200 crore a year for the entire army of ministers (and we have parallel armies in all the four provinces).
How do we get out of our Rs1,000,000,000,000 black hole? Remember; 94 percent of government employees, both at the federal and provincial level, are below BPS 17. The combined salary bill of all provincial and federal government employees is close to Rs500 billion. Non-monetary perks for government employees are estimated to be upwards of Rs50 billion. Depending on one’s connections a high ranking, well-connected government servant could cost the treasury between five to10 lakhs a month. Khusro Pervaiz, the commissioner for the city of Lahore, for instance, reportedly cost the treasury Rs10 lakhs a month. Monetising all perks is the way out.
The good news is that the Rs1,000,000,000,000 being talked about here has already gone down the tubes – it’s history. The bad news is that the GOP has once again begun burning midnight oil, preparing outlays and firming up plans to lose an additional Rs1,000,000,000,000 over the following 12 months. In Islamabad, losing a trillion a year, every year, is referred to as the annual ‘budget exercise’.
So, how do we get out of our Rs1,000,000,000,000 vicious cycle? Political will, just by itself, can get us out. Sad that 90 percent of our decision makers give the other 10 percent a bad name.
The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com
Source : http://thenews.com.pk/TodaysPrintDetail.aspx?ID=43386&Cat=9
Rs1,000,000,000,000 is also roughly the amount by which Pakistan’s money supply is expanding per year. In effect, the GOP is printing Rs300 crore per day, every single day. That amounts to printing Rs11 crore per hour or Rs20 lakhs per minute. The GOP would have printed Rs60 lakhs by the time you will finish reading this brief commentary. And, whether you stop right here or not, the GOP will continue printing.
How do we get out of our Rs1,000,000,000,000 black hole? Consider this: Operating Expenses of the federal government Rs400 billion and losses at State Owned Enterprises (SOE) Rs400 billion – that’s 80 percent of the black hole right there. Pepco has lost Rs180 billion, PIA has lost Rs77 billion and Pakistan Steel Rs44 billion. How about an international tender to recruit the best brain available to run these hematophagous leeches?
How do we get out of our Rs1,000,000,000,000 black hole? It is budget time and Islamabad is flooded with ‘Demand for Grants’. The President of Pakistan demands Rs10 lakhs per day or Rs36 crore per year as ‘staff, household and allowances’ for 6-dozen gardeners, 175 servants and 263 household staff. The president also demands six lakhs per day or Rs22 crore per year for his foreign junkets. The Prime Minister of Pakistan demands Rs33 lakhs per day, Rs10 crore per month, Rs120 crore per year for his foreign tours. Each and every one of the ministers costs the treasury a lakh a day, Rs30 lakhs a month. That’s Rs200 crore a year for the entire army of ministers (and we have parallel armies in all the four provinces).
How do we get out of our Rs1,000,000,000,000 black hole? Remember; 94 percent of government employees, both at the federal and provincial level, are below BPS 17. The combined salary bill of all provincial and federal government employees is close to Rs500 billion. Non-monetary perks for government employees are estimated to be upwards of Rs50 billion. Depending on one’s connections a high ranking, well-connected government servant could cost the treasury between five to10 lakhs a month. Khusro Pervaiz, the commissioner for the city of Lahore, for instance, reportedly cost the treasury Rs10 lakhs a month. Monetising all perks is the way out.
The good news is that the Rs1,000,000,000,000 being talked about here has already gone down the tubes – it’s history. The bad news is that the GOP has once again begun burning midnight oil, preparing outlays and firming up plans to lose an additional Rs1,000,000,000,000 over the following 12 months. In Islamabad, losing a trillion a year, every year, is referred to as the annual ‘budget exercise’.
So, how do we get out of our Rs1,000,000,000,000 vicious cycle? Political will, just by itself, can get us out. Sad that 90 percent of our decision makers give the other 10 percent a bad name.
The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com
Source : http://thenews.com.pk/TodaysPrintDetail.aspx?ID=43386&Cat=9
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