On the margins
DISADVANTAGED persons (DPs), comprising poor, unemployed, uneducated and unskilled low-wage workers, and other vulnerable members of society, usually get the long end of the stick and the short end of the carrot. They get a disproportionate share of both punishments for their crimes and rewards for their labour. They are generally denied their just and equitable share of the country’s resources and the wealth generated from those resources.
DPs are socially, economically and politically marginalised members of society. They, therefore, require special attention and treatment by the state.
The Constitution promises that adequate provision shall be made to safeguard the legitimate interests of minorities and backward and depressed classes. Consequently, the Principles of Policy therein require the state to protect minorities, promote educational and economic interests of backward classes or areas, and reduce disparity in the income and earnings of individuals.
Mindful of these constitutional requirements, Pakistan should strenuously seek to realise these principles especially during the current health emergency and resultant economic crisis to preclude DPs from being further marginalised.
An unequitable distribution of relief is evident.
The federal government has taken various ad hoc measures to safeguard the interests of DPs, comprising cash disbursements to provide relief to workers, cash transfers to low-income families, and financial support to SMEs in the form of relief on electricity bill payments and support of bank lending to them. It has also launched a programme for the construction sector intended to address the acute employment needs generated by the lockdowns.
Further, the provinces have announced fiscal measures, broadly comprising cash grants and ration distribution programmes for low-income households. The State Bank has also approved a scheme to incentivise businesses to avoid laying off their workers during the pandemic and increased the regulatory limit on extension of credit to SMEs.
The financial support granted to workers, low-income families and SMEs is a small fraction of the overall relief package announced by the federal government to overcome the economic crisis. Similarly, the fiscal and financial measures announced by the provinces and State Bank are also imbalanced. It would not be possible for any government to sustain its cash grants because of fiscal contraction that is taking place simultaneously due to suspension and closure of businesses.
An analysis of all the support packages evinces an inequitable distribution of relief to DPs. As usual, the rich employers, big businesses and large-scale enterprises benefit principally from the financial, fiscal and monetary incentives that have been given without regard to the growing vulnerability of DPs and ever-increasing gap between the haves and have-nots. The federal government’s construction sector programme is a glaring example of inequity. It appears to be more of a tax amnesty scheme for employers than a relief package for workers.
The government should make special efforts to not only safeguard the short-term welfare but also advance the long-term interests of socially and economically backward classes of DPs through more balanced policy measures. These measures should prioritise and focus on poverty alleviation and financial inclusion programmes and development of microenterprise and SME sectors, especially in rural and other underserved regions and areas of education, health, housing and welfare. Parliament should also provide statutory support for the establishment of adequate social safety nets for DPs and adopt a legislative policy aimed at reducing disparity in individual incomes and earnings through various enactments.
The suggested policy and legislative measures are intended to reduce societal imbalance and enable DPs to exercise their fundamental rights effectively. Because of the shrinking fiscal space available for development funding, these measures could be financed in part through savings generated by reduction of administrative expenditures, eg with cutbacks in salaries and allowances of parliamentarians, senior bureaucrats and judges. Similarly, the colossal salary and other benefits enjoyed by directors, CEOs and senior managers of large businesses need to be rationalised for an equitable sharing of the financial burden necessary to overcome the effect of the looming economic recession. The rationalisation of salary structures in both public and private sectors would also help in achieving the desired goal of reducing wide disparities in individual incomes.
The ad hoc policy and legal measures taken by the government to combat the coronavirus pandemic do not either protect or promote the interests of DPs adequately. The government has done well to think of and make an effort to cater to the needs of DPs but it certainly needs to do much more — more equitably and systematically.
The writer is an advocate to the Supreme Court of Pakistan.
Published in Dawn, May 13th, 2020