Imtiaz Gul
Pakistan at the moment represents a classic study on how the elite can bring a country to its knees, more so in a crisis. The latest manifestation of this is the COVID-19-induced economic adversity. Once again the elites stepped up their demands for incentives and concessions in a country where three-fourth of the labor force is contractual employees and daily wagers. The majority of the population lives on daily, weekly, or monthly payments. The past few weeks have seen nearly all large and medium-sized businesses clamoring for tax waivers, low policy rates, release of tax refunds (rebates, subsidies), and elimination of import restrictions. They have been doing this throughout the country’s history, and displayed few qualms in peddling it even during this unprecedented global crisis.
Out of the nearly 75 million labor force, 32 million (56%) are vulnerable; roughly 43 million (76%) are working without any formal contract, says a daily Business Recorder editorial.
The Ehsas relief package for about 12 million therefore pales in the face of the enormity of the problem. But “if the government is to cover all those with minimum wage (Rs17k/month), the requirement is Rs1.3 trillion per month,” says the editorial.
A major chunk of the Rs1.2 trillion stimulus package is for business support, with only Rs144 billion earmarked for the aforementioned 12 million households for four months.
Ironically, and sadly, empathy for the poor gets lost in the maze of relentless demands by exporters, retailers, and industrialists, with little word on how and for how all businesses intend to retain and pay their workers. Official data suggests that in case of continued restrictions at least 15 percent, i.e., 11 million of the labor force face the specter of joblessness. The so-called “smart lockdown” therefore appears to be driven more by these stark economic considerations for the 75 million low-income, daily-wage workers and shopkeepers, than by a situation that as of mid-April looked relatively in control. Compliance and enforcement will remain an acute challenge and thus require continued advocacy on how to keep the deadly virus from rampaging through Pakistani society.
