Public mistrust of the government stems from the gap between official economic claims and citizens’ real-life experiences. Few believe that inflation is actually one-third of what it was before or that the unemployment rate is low.

Official data indicates a sharp decline in inflation to 9.6 per cent from 38pc in May 2023. However, people grappling with eroding real incomes and rising family needs view the government’s assertions as mere propaganda that ignores their hardships.

The same applies to the unemployment rate; the current Economic Survey projects it at 6.3pc, while it appears much higher in public perception, as many know numerous people of employable age desperately seeking work. This not only disappoints the public but also fuels their anger.

To improve governance, enhance service delivery, boost resource mobilisation and regain public trust, the government seems to have recognised the importance of better data management. The gap between public perception and official data has undermined its credibility.

‘If the government were genuinely committed, the number of income tax filers could have been tripled to 15m instead of the current 5m’

To address this, the government is said to be working to integrate various data sources to support evidence-based policymaking, ensure effective implementation and conduct credible impact assessments. As part of this effort, it plans to hold a ‘Datafest’ in Islamabad to consult with relevant stakeholders and further develop the country’s data ecosystem.

In addition to the Pakistan Bureau of Statistics (PBS), National Database and Registration Authority (Nadra), State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), numerous federal and provincial departments, including the ministries of education, health, agriculture and labour hold vast amounts of data covering nearly every aspect of the country’s socio-economic landscape.

Private entities, such as telecommunication companies, digital retail firms, and marketing agencies, have also developed extensive datasets. However, the lack of coordination and data sharing between these entities, along with the compartmentalisation of information, significantly limits its effective use.

In a detailed concept paper on the scheduled event, Dr Naeem uz Zafar, Chief Statistician, PBS, stated that the aim of ‘Datafest’ is to bring together key stakeholders to create a dynamic data ecosystem through better exchanges. “The missing factor has been ‘communication’ that promotes mutually beneficial usage, making the process voluntary and sustainable.

“At ‘Datafest’, we intend to focus on social, real, fiscal and financial sectors to foster a culture of data use and reuse, with the ultimate goal of leveraging the full potential of the economy through an inclusive, publicly credible process. We will also provide a platform for all public and private entities to showcase and market their valuable work. These include fintech, edtech, agritech and other companies that are capitalising on evidence-based insights to drive business growth,” Dr Zafar explained.

Furthermore, he quoted Mihir Shah of Fidelity Investment to highlight the dilemma at hand in Pakistan, “Everyone will say that data is extremely important to the business. However, beyond that, people don’t know what to do next.”

Sharing details, the concept paper highlighted the following thematic areas that will draw special attention: social and real sectors, resource mobilisation, disaster preparedness and mitigation and climate change and adaptation.

“What we measure influences our actions; flawed measurements can lead to misguided decisions,” commented a data analyst.

“Pakistan shattered the myth that it is an ungovernable nation burdened by unresolved historical issues and lacking the capacity and will to serve its people. By managing the pandemic crisis more effectively than not only its peers but also many advanced nations, Pakistan has demonstrated the depth of its potential when it commits to a purpose,” remarked a keen observer of the country.

All major potential participants in the government-sponsored discussion on data management were approached for their input on factors that hindered progress in this area so far. However, none agreed to provide an on-the-record response.

Rehmatullah Wazir, a former member of tax policy at FBR, was candid in his response: “Lack of political will and constituency considerations are major obstacles. There is a vast amount of data available from both public and private sources that could be used to broaden the tax base and curb tax evasion and fraud in direct and indirect taxes.

“If the government were genuinely committed, the number of income tax filers could have been tripled to 15 million instead of the current 5m, and sales tax filers could have been increased from 225,000 to 500,000 within a year,” he argued.

Published in Dawn, The Business and Finance Weekly, September 16th, 2024