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Friday, July 19, 2024

Op-ed: Here is what Pakistan can learn from tiny Tanzania for economic prosperity

A documented economy is a necessity for an economic recovery in Pakistan. Pakistan can learn from Tanzania, where the use of EFDs (electronic financial devices) is standard.

Can a country function without a documented economy? In today’s modern world, it is almost impossible to imagine. The future of the state depends on economic development. Decades ago, the state was divided into a capitalist, communist, and socialist economy. The communist system, from production to distribution, was run under a system of government, while the people were paid according to their needs a  nd abilities. While the business was collectively owned by the state.

Economic recovery not possible without restoring capitalistic confidence

This experiment was also carried out in Pakistan in the seventies, which failed miserably. It died his own death. In Western democracies, capitalism flourished in a short period of time. When the investment was being made in the West, our people were afraid that if the institution witnessed upward growth, the administration would get out from our hands. The nationalization of institutions had severely damaged Pakistan’s capitalist system. There was a significant decline in the growth rate.

Read more: Pakistan’s forex reserves surge as economy makes speedy recovery

Increasing economic activity may not be possible without restoring capitalist confidence. The state creates balance, not business. Providing a competitive economy and equal opportunities in the first and utmost duty of the state. At the same time, the documented economy is essential to keep an eye on economic activities. The business of the state is run on the basis of the revenue collected by the government in tax matters. The security of the state is linked to a strong economy.

A country like Congo, which is larger in area than India and eighty-five times more fertile than Saudi Arabia in terms of minerals. The largest gold and diamond mine in the world is found in the Congo, while surprisingly the people are deprived of even basic necessities despite fan-tailed full of natural resources but without a system.

Read more: A Locked down Economy: Where Can You Invest In The Midst Of A Storm?

The head of Congo’s largest private bank, a Lebanese, is considered to be very close to the head of state, Joseph. I asked him why he chose a country like Congo for investment. The answer to this was very astonishing, but it would not be wrong to say that Pakistan seems to be right. The capitalist fog drives the country where the state system is running without any state system. Make as much money as you want and take it wherever you want. Exploit the people as much as you want. Whether hoarding, controlling supply, and demand. Such power is not possible in any state where the system exists.

The state system is linked to the documented economy. In our country too, the documentary economy has been booming since the 1990s. We are one step ahead and two steps back. Sometimes it seems that perhaps we do not want to do this work, otherwise can the Patwari’s bag be changed.

Sensitivity was at its height. Which was considered irreverent, it’s repealed today. Innovation is being introduced in the system to facilitate the people. Mobile Land Record Centers or Satellite Centers are being preferred all over the province of Punjab. Rightsholders are getting services from home.

Whether it is taking a loan from a bank or paying a fee, issuance record of rights, registry and transfer, the Punjab Land Record Authority laid the foundation of a modern system through technology that will be the basis of future economic revolution. Agricultural loans or agricultural income will be available at a single click. Industrial income cannot be hidden in terms of agricultural revenue. A peaceful path to real reform.

A documentary economy requires the introduction of a cashless economy. Tanzania is a prime example of the benefits of a documented economy. Africa’s fastest-growing economy is achieving growth targets of 7 percent a year since 2000. Poverty is declining significantly, mainly because of the documented economy.

The Tanzania Revenue Authority has introduced a system such as an electronic fiscal devices required of all business persons or entities. All invoices will be issued only from EFD. The system of check and balance is implemented on the common people till its use and as a result the productive capacity of the country increased. The country’s revenue multiplied and people’s lives prospered. Is this revolution possible in Pakistan too? Rather, it is the only way out of the clutches of the IMF.

Digital economy must prosper in order to have a documented economy

The foundation of the documentary economy might not be achieved without systems such as the Cashless Economy and the Electronic Fiscal Device. Real reforms have been laid in Punjab in the manner in which the land revenue system has been changed. Significant increase in government revenue. Digital system has not only significantly increased government revenue but also ensured the protection of people’s property records. Ensured that all relevant agencies have access to the fastest information.

To lay the foundation for a documented economy, the government should bring together the Board of Revenue Punjab, the Punjab Land Record Authority and all relevant revenue authorities on a single platform and introduce a system like the electronic fiscal device in the style of the Tanzanian Revenue Authority to be a guarantor of the future.

The views expressed in this article are the author’s own and do not necessarily reflect the editorial policy of Global Village Space.