Massive crisis facing Pakistan

Pakistan is facing the biggest humanitarian crisis and economic catastrophe in its chequered history. The massive floods which have wiped out agricultural lands and destroyed roads and other infrastructure in this impoverished South Asian nation have also caused havoc in the lives of more than 20 million people. It has also exposed the many shortcomings in the way the country is run.

Not only does it appear likely that the floods have hijacked the country's plans to hit a 4.5 per cent gross domestic product growth target this year, its fiscal deficit is now projected to widen to more than 8 per cent of GDP.

There is also the possibility that it may scrap its earlier plans to spend on infrastructure, schools, factories and security forces in former Taliban insurgent strongholds in the northwest, setting the government back in its efforts to win public support in these restive areas.

The floods, which have put an area about the size of the United Kingdom or about one-fifth of Pakistan's territory, under water is putting the civilian government under unprecedented pressure.

More than half a million people are now living in cramped, unhealthy conditions in about 5,000 schools. The poor sanitation in these places makes the likelihood of the breakout of potentially fatal diseases a real nightmare. The general feeling among the flood victims is that they are paying the price because of the authorities' inability to effect better coordination.

Comparison with the disaster of the 2005 earthquake in northern Pakistan, is inevitable and the question arises why now there is a lack of ordinary Pakistanis and civil society activists being mobilised to play a greater role in this disaster. The answer seems to be that the confidence of the people in their leaders is not at too high a level. Scepticism also abounds that the government has not got its act together.

Foreign Minister Shah Mehmood Qureshi has said that so far more than US$800 million has been donated or pledged to ease the suffering of the nation from one of the worst disasters in its history.

Many nations, taken in by the magnitude of the tragedy, have pledged to donate to the victims in Pakistan. The United States has committed US$87 million and is expected to give more in the coming days. Jeddah-based Islamic Development Bank has pledged US$11 million humanitarian package for displaced Pakistanis. Even in Brunei, its Ministry of Culture, Youth and Sports has set up a humanitarian fund for the victims in Pakistan.

If it is true that Pakistan's reserves of foreign exchange and gold is as much as US$15 billion, perhaps, now is the time to use some of it to help in the rehabilitation works. Another possible source of funding could be from within the country itself.

A recent article in one of Pakistan dailies had highlighted the fact that only 1.6 per cent of Pakistanis are registered taxpayers, which means that tens of billions of dollars in revenue are being lost annually. This loss in revenue has been further underlined by the Pakistan Federal Board of Revenue which is said to have identified structural problems in its tax collection procedures. Perhaps, herein lies one solution to Pakistan's funding problems.