Article 38(e) of the Constitution obliges the state to “promote the social and economic well-being of the people.”[ing] Income and income disparities among individuals, including people from different classes in Pakistan. ” Those of us who are allergic to equality have done everything in our power to subvert and defy every word of Section 38(e) illegally and unethically.
We have consistently acted to enrich a small, incompetent, and insatiable class at the expense of pushing millions of hard-working citizens into extreme poverty and misery. This is perhaps the biggest reason for our current decline and dysfunction. Here I explain how we created this alarming inequality and propose a solution, focusing only on one aspect of this disease: Pakistan’s distorted pension system .
Pensions are Pakistan’s biggest unspoken existential threat. The federal pension budget for 2023-24 stands at 801 billion rupees, far exceeding the 714 billion rupees needed to run the entire civilian government.
Completely oblivious to this disaster, the government announced a seemingly innocuous (but deadly) “political bribe” by increasing pensions by 17.5 percent across the board.
In effect, the pensions of Supreme Court judges were to be increased (on average) by 150,000 rupees a month, and those of senior civil servants by about 40,000 rupees, but only by 3,500 rupees for 20,000 rupee pensioners. .
In parallel, 65 million Pakistani workers are not enrolled in any pension scheme at all, leading to a humiliating and demoralizing retirement with zero pensions. A few people who are enrolled in the Employee Old Age Benefit Scheme receive just Rs 10,000 per month.
Compared to the staggering pension of approximately 920,000 rupees that the Chief Justice of the Supreme Court receives, the ratio is 1:92. Ironically, the same ratio in the UK (for chief justices and pensions for the lowest paid employees) is only 1:11. Although we admire many of the democratic norms of Western countries, perhaps we could also adopt some of their inequality-reducing measures.
The pensions of the wealthy are stuffed with layers of gold and silver. For example, consider judges’ pensions. In addition to his already hefty pension of about 900,000 rupees per month, the retired judge of the High Court also has 2,000 units of free electricity, 300 liters of free fuel, 24-hour security (33,280 rupees per security guard and three security guards). (name) rights are also granted. . As if this wasn’t enough, you’ll also be entitled to buy a government car at a depreciated price to use after you retire.
Wealthy retirees’ benefits are inflated with gold and silver.
A study of the pension benefits of judges in developed and rich countries found some surprising results. Judges (and other government employees) receive no benefits except for a flat, transparent pension, which they also contribute to while in office.
When asked under the Freedom of Information Act, the UK Supreme Court responded: “There are no special perks or privileges available to retired Supreme Court Justices. However, as Justices of the Supreme Court, they are entitled to be addressed as ‘Sir’ or ‘Lady.’
The use of this courtesy title will continue even after their retirement. “Shouldn’t similar due diligence be extended to replace the post-retirement perks and privileges of all government employees in Pakistan?”
Pakistan, struggling for survival, is demanding reforms in all areas. Let’s start with the pension. Pension should not exceed 200,000 rupees and should not be less than 20,000 rupees so as not to exceed the ratio of 1:10. All benefits, including salaries and pensions, will be abolished. All pensions currently paid in foreign currencies will be abolished. Pensions must extend to the spouse and cannot be extended to the second generation.
Like any other income, pensions must qualify as taxable income. Finally, Pakistan could follow its neighbors and immediately switch to a nationally contributed pension scheme in which all employees contribute 10% of their basic salary each month, which is matched by the government. Managed by a specialist pension trust, it may be the only way to get rid of the pension pile that embeds us so deeply every day.
Pensions must provide a certain minimum standard of living for all pensioners. They give a lifetime of luxury to some people at the cost of a lifetime of misery to millions of people who are not entitled to a single rupee of pension despite putting in as much effort in their careers. It is certainly not intended to be provided.
The current pension system is seen as accelerating poverty in old age and income inequality among retirees. There lies a golden opportunity here to answer the call of section 38(e) and use pensions as a means to reduce the devastating disparities and inequalities in our society.
The author is an industrial engineer and a volunteer social activist.
naeemsadiq@gmail.com
Published at Dawn on December 5, 2023