Public distrust of government is driven by the gap between official economic statements and citizens’ actual experiences. Few believe that inflation is actually a third of what it once was or that the unemployment rate is low.
Official data indicate a sharp fall in inflation, which stood at 9.6% in May 2023, down from 38%. However, those struggling with the erosion of their real incomes and rising family needs regard the government’s claims as mere propaganda that ignores their difficulties.
The same applies to the unemployment rate: the current Economic Survey projects it at 6.3%, while in public perception it appears much higher, as many know that there are many people of working age who are desperately looking for work. This not only disappoints the population, but also fuels their anger.
To improve governance, optimise service delivery, boost resource mobilisation and regain public trust, the government appears to have recognised the importance of better data management. The gap between public perception and official data has undermined its credibility.
“If the government was really committed, the number of taxpayers could have tripled to 15 million instead of the current 5 million”
To address this issue, the government is said to be working to integrate diverse 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), the National Database and Registration Authority (Nadra), the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR), numerous federal and provincial departments, including the ministries of education, health, agriculture and labour, possess vast amounts of data covering almost all aspects of the country’s socio-economic landscape.
Private entities, such as telecoms companies, digital retailers and marketing agencies, have also developed extensive data sets. However, the lack of coordination and data sharing between these entities, coupled with compartmentalisation of information, significantly limits their effective use.
In a detailed concept paper on the planned event, Dr. Naeem uz Zafar, Chief Statistician at PBS, said the aim of “Datafest” is to bring together key stakeholders to create a vibrant data ecosystem through better exchanges. “The missing factor was ‘communication’ that promotes mutually beneficial use, making the process voluntary and sustainable.
“At Datafest, we aim to focus on the social, real, fiscal and financial sectors to foster a culture of data use and reuse, with the ultimate goal of harnessing the full potential of the economy through an inclusive and 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 capitalizing on evidence-based insights to drive business growth,” explained Dr. Zafar.
He also quoted Mihir Shah of Fidelity Investment to highlight the dilemma in Pakistan: “Everyone will say that data is extremely important to business. But beyond that, people don’t know what to do next.”
Sharing details, the concept paper highlighted the following thematic areas that will attract special attention: social and real sectors, resource mobilization, disaster preparedness and mitigation, and climate change and adaptation.
“What we measure influences our actions; wrong measurements can lead to wrong decisions,” said one data analyst.
“Pakistan has shattered the myth that it is an ungovernable nation, burdened by unresolved historical problems 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 committed to purpose,” commented a close observer of the country.
All the main potential participants in the government-sponsored debate on data management were asked to give their views on the factors that have so far hindered progress in this area. However, none agreed to give an official response.
Rehmatullah Wazir, former member of tax policy at FBR, was candid in his response: “Lack of political will and constituency considerations are major hurdles. There is a wealth of data available from 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 was really committed, the number of income tax payers could have tripled to 15 million instead of the current 5 million, and the number of sales tax payers could have increased from 225,000 to 500,000 in one year,” he argued.
Published in Dawn, The Business and Finance Weekly, September 16, 2024
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