The people of Pakistan are tired of rampant corruption and are now entitled to demand an end to this ongoing financial theft. However, since transparency is not on the platform of the political parties in power, a strong statement from the IMF can only save Pakistan from financial collapse with the reinstatement of real-time monitoring mechanisms.
The International Monetary Fund (IMF) has called for Pakistan to be more transparent rightfully about its Public Sector Development Program (PSDP). The goal of the IMF’s demand is to improve the efficacy of the development initiatives by highlighting minor details. As Pakistan is ranked 133rd in the Transparency Index, the Planning Commission (PC) of Pakistan’s conventional minds is currently facing its biggest challenge: bringing transparency to the PSDP program.
This demand of the IMF, finally speaks to the long-lasting desire of 240 million Pakistanis yet at the same time it allows me to document my real tragic story to bring transparency to development projects. It is my dream too that was shattered when I tried to introduce a real-time monitoring mechanism for PSDP projects for 100% transparency.
The most infamous bureaucrat in Pakistani history, who brought with him outdated methods of embezzling public funds, took over as head of PC in June 2008, replacing the honest professional, mastermind of IPP fiascos. Sadly, I was initially given the order by the arrogant Chairman PC to give his crony the contract for a massive project that was already under construction, against all legal advice. The same bureaucrat is regarded as a master of embezzlement of funds. However, he escaped punishment because he was a big fly who consistently evaded the law.
I had disobeyed his order loudly first by writing an op-ed in English daily on the need for transparency, which created unprecedented turbulence in power corridors. Yet, the most innovative idea that came to mind was a web-based real-time monitoring system for the PSDP projects to ensure transparency. The web-based system was launched to track project implementation on a real-time basis. From a desktop located anywhere, the status of the projects could have been reviewed 24/7 by any of the stakeholders including the public.
The system enabled the Planning Commission to cope with the challenges of distance, time pressures, inadequate resources, and lack of knowledge and skills, and facilitated collaborative workflow, information sharing, and good governance. The mechanism practically demonstrated monitoring resource utilization, such as labor, equipment, and materials, real-time identification of inefficiencies, and optimized allocation, resulting in reduced costs. Additionally, monitoring helped in detecting and addressing issues early, minimizing the need for rework, and avoiding potential delays or penalties that can add to project costs. Thus, it overall addressed the chronic issues of cost overrun.
Yet, the own-developed website ‘Good Governance dotcom’, created more jolt than the devastating earthquake in 2007. The cry of Chairman PC reached the seven skies when I sent the link to the website and op-ed. The long technical process ended when I tendered my resignation with the condition that the chairman PC would not change the procurement rules. I saved the PSDP projects from his sticky figures at the cost of my resignation but after my departure, the website was forcefully closed.
The biggest issue with PSDP projects is still cost overrun and non-standard delays in completion. Forget the inflation and devaluation of rupees, the real challenge is always the quantum of work which is never perceived precisely. Let’s quote by examples. Commencing in October 2002, the Kachhi Canal Project initially incurred costs of Rs 32 billion; however, the project’s current cost has escalated to Rs 80 billion, and it will take years to finish. Balochistan would never have reached a boiling point if this irrigation project had been finished. Take the ominous example of the 969 MW Naleem Jhelum Project to understand why electricity is so costly. The Neelum-Jhelum hydropower project’s initial estimated cost of Rs15.3 billion in 1989 skyrocketed to an astounding Rs508 billion. Cost overruns, poor management, and corruption are commonplace in the history of PSDP projects. Analyzing the costs of CPEC energy projects is a mistake made very frequently. The price of electricity is directly correlated with the total cost of power projects. One of the institutions at fault for Pakistan’s debt trap collapse is the Planning Commission.
Why did the Planning Commission shelve the real-time monitoring system? It provides not just near-total transparency but also real-time auditing. The Public Accounts Committee (PAC), PPRA, the audit department, the NAB, and numerous other anti-corruption departments have not only failed to curb this menace but have eliminated the system. They have grown to be a significant financial burden on the exchequer. These bodies function mainly as reactionary entities, frequently taking up action long after the performers have left the stage and closed the curtains.
These organizations have little to offer regarding accountability, particularly for those who cede authority or influence. Conversely, there are instances where the NAB discarded corruption cases for less than Rs 500 million in taxpayer funds by simply altering the game’s rules. The only other option available to these organizations is a real-time mechanism to seal up the big holes in our leaky bucket while also ushering in a new era of business-friendly conditions free from the fear of the NAB.
How can this work in Pakistan, where the use of the internet and smartphones is growing exponentially? Why is there political chaos in Pakistan, and does anyone care? Illiterate citizens can use mobile devices and the internet, putting the government on edge. Therefore, the best course of action is to proactively disclose financial information in real-time on departmental websites so that the general public can assess directly whether public funds are being managed effectively.
The Planning Commission has been unable to keep pace with the state of international economic development as opposed to the 1960s and early 1970s when the Planning Commission was at its peak. Another prosperous period occurred between 2002 and 2008, when Dr. Akram Sheikh, a well-known national engineer, led the PC. Again, the PC became a rubber stamp, approving projects as ministries and line departments wanted them to. I have studied the Planning Commission’s operation in great detail and my observation is that most junior-level officers of ministries and line departments prepare the Planning Commission Form-I, or PC-I. Technically and financially, the PC-I was hardly securitized, which led to constant cost overruns.
Furthermore, the bridges of members made the Planning Commission a Soviet-style bureaucratic organization that stunted the nation’s economic development. The actual growth rate of the Pakistan economy was much less compared to the targeted rate of growth. This difference between the target growth rate and the achieved growth rate portrays the complete failure of the Planning Commission and has made Pakistan one of the poorest nations today only because of the utter failure of economic planning.
You can evaluate the Planning Commission’s performance by looking at the number of research studies on economic growth and PC-IVs, or Project Completion Reports of the projects completed during the last 20 years. The harsh reality is that these two fundamental indicators of the Planning Commission completely failed. The only reason the commission is still in existence is because of its memorable speeches; otherwise, a small team of extremely competent clerks could handle managing PSDP status and the annual plan. The Planning Commission’s inability to eradicate poverty, have any discernible effect on unemployment, or lessen wealth, and income inequality has made Pakistan a global begging bowl.
However, Pakistan must first take a cue from a Tea boy, who disbanded the Planning Commission in India nearly ten years ago, when foreign reserves were $ 304 billion and now nearly twice as much, and established an elite public policy think tank with real experts instead of relying on inept officials.
Pakistan’s people are tired of rampant corruption and are now entitled to demand an end to this ongoing financial theft. However, since transparency is not in the platform of the political parties in power, who cares about the aspirations of 240 million Pakistanis? This opinion piece won’t have any bearing at all. However, a strong statement from the IMF can only save Pakistan( the nation with the fifth-largest nuclear weapons stockpile) from financial collapse with the reinstatement of real-time monitoring mechanisms.
But when the Special Investment Facilitation Council (SIFC) was established in June 2023, a paradigm shift occurred. SIFC effectively took over for the defunct Planning Commission. By uniting all relevant parties on a single platform, including Federal Ministries, provincial and local governments, and the Pakistan Army for support, SIFC is a more active organization than the Planning Commission. Real-time monitoring of all PSDP and provincial development projects is now SIFC’s enormous task, to guarantee 100% transparency while also appeasing the IMF and other international donors.
The Next Loan from the IMF Tranche is on the card, but we would like to see the wisdom note attached. Pakistani will pay the IMF by indirect taxes, not the politicians. However, real-time surveillance’s greatest benefit will be its ability to filter the corrupt political system. In its presence, only legitimate politicians will be willing to contest the election.
