Pakistan collects far less tax (as a percentage of GDP) than most countries. So far the PML(N) government has not been able to significantly increase the tax ratio. (Chart: Dawn)
The Pakistan Muslim League (Nawaz) (PML (N)) government is completing its second year in power on May 11, 2015. It is astonishing to observe that the accountability process for democratically elected government has improved significantly.
Under a CIPE grant, the first such public accountability process was initiated by Policy Research Institute for Market Economy (PRIME), an independent think tank based in Islamabad. PRIME started a simple exercise by taking concrete promises from PMLN’s economic platform and, through a scientifically designed scoring process, monitoring the government’s performance under three key sections: Economic Revival, Energy Security, and Social Protection. These sections were further divided into 82 sub-categories.
The report is widely accepted as an unbiased measure of the government’s performance. The report received significant coverage in local media, both print and television. PRIME Executive Director Ali Salman suggests that “IMF Staff Mission assessment of Pakistan’s economic situation and reforms have many agreements with PRIME’s Tracking Report.”
The accountability process has recently moved to the next level, as the government’s Standing Committee on Finance publically accused the PML (N) government of making decisions on taxation measures in isolation, without taking the Standing Committee in confidence.
A recent World Bank report suggests that the country will not meet the Millennium Development Goals of universal primary education by 2015. The report ranks Pakistan 113th out of 120 countries in the “Education for All Index.” With seven million out-of-school kids, the challenge is snowballing with each passing year.
“The recent workshop by CIPE on the 19th of May 2014 in Port Moresby in Papua New Guinea is important as firstly puts our vision into action but most importantly it gave a boost for those women to take a bold step towards starting a business or “enterprise”. The women learnt how to transform their ideas or hobbies into a business. They learnt the importance of innovation, implementation, ability to market products and to understand numbers in a business environment. The breakaway discussions and activities were not only fun but useful in emphasis important business skills like to know how to negotiate pricing in a business time management and knowing specifications before you start dealing with suppliers. So many positive feedback from the participants. Can’t wait for the next one.” – Janet Sios, Interim Vice President PNGWCCI
CIPE is working with a newly established women’s chamber of commerce in Papua New Guinea (PNG) to become a strong voice of women-owned businesses a country that is known for its unequal treatment of women.
According to the World Bank’s Doing Business 2014 report, PNG is getting worse in areas such as Starting a Business (101st in the world, down 9 places from 2013) and Getting Credit at 86th in the world (down 4 spots from 2013). In such an environment, it is extremely challenging for women to start an entrepreneurial initiative. This forces many women to remain in the informal sector.
During the course of recent capacity building sessions held in May 2014, CIPE organized a workshop for Papua New Guinea Women Chamber of Commerce members titled “Starting Your Own Enterprise.” CIPE Deputy Country Director for Pakistan, Hammad Siddiqui led the session that covered basic concepts of starting a business, challenges for small businesses, analyzing market opportunities, etc.
In 2013, Pakistan experienced its first peaceful transition between two elected, democratic governments. In another first, several parties, including the winning PML-N, produced a concrete manifesto outlining their planned economic policies. But citizens have no mechanism to regularly track what governments are doing towards achieving their election promises.
With CIPE support, the Policy Research Institute of Market Economy (PRIME), an independent economic think tank, has been monitoring progress on the government’s economic manifesto via a carefully designed scorecard. The results show that while the new government has made some progress, implementation of its election promises remains slow.
For the first time since its independence in 1947, Pakistan saw its first ever peaceful transition from one democratically elected government to another in 2013. While this was a remarkable success for Pakistani democracy, the country still lacked a process for holding civilian governments accountable for their electoral promises.
Working with economic think tank Policy Research Institute of Market Economy (PRIME), CIPE Pakistan initiated a project to monitor key economic promises made by the current government in its pre-election manifesto.
Through a consultative process, PRIME developed a scorecard to gauge the progress made by the government in the areas of economic revival, energy security, and social protection, focusing on 26 of the goals mentioned in the winning Pakistan Muslim League’s pre-election manifesto. Scores are based on a possible 10 points in each category, with the most thorough implementation earning the most points.
The first Scorecard report released on January 27 shows that the average score for the economic revival is 3.17 out of 10, energy security scored 4.16, and social protection scored 6. This report covered the period between June 2013-December 2013.
Energy imports are a key issue for Pakistan’s business community. (Photo: The Tribune)
CIPE partner Rawalpindi Chamber of Commerce and Industry organized its first All-Pakistan Chamber Presidents’ Conference in 2009. Since then, the annual conference has become an important venue for bringing the business community from across Pakistan together to discuss pressing economic issues and propose reforms to provide level playing field for businesses to grow.
This year, the conference focused on making the newly-elected democratic government accountable for its promises. The current government is considered pro-business, and has made a number of promises in their manifesto to undertake business-friendly policy reform. Now the business community needs to monitor the progress made by the government in initiating the reform process and the implementation of these reforms. To this end, the Policy Research Institute of Market Economy (PRIME), with the help of CIPE, has started a Manifesto Monitoring Project to track how well the government is keeping its promises.