Analysis, Side Feature, South Asia

Pakistan Headlines – 30 March 2018

Headlines:

  • Privatization of Electricity is Forbidden as it is Declared Public Property by Islam
  • It is the Law of Allah (swt) that is Supreme and Alone Worthy of Nussrah
  • For the Sake of Re-Election, Rulers Contradict their Own Corrupt Tax Prescriptions


Privatization of Electricity is Forbidden as it is Declared Public Property by Islam

A delegation of the foreign company, Shanghai Electric Power Ltd (SEPL) led by Wang Yundan, the company chairman, called on the Prime Minister, Shahid Khaqan Abbasi, in Islamabad on 26th March 2018 and apprised him of the current status of acquisition process of majority stake in Karachi-Electric Ltd (KEL).The premier assured the delegation that the government remains committed to supporting SEPL with a view to further liberalising the power generation and distribution sector. “The government is committed to enabling the process [of KEL sale] to move forward subject to completion of all regulatory frameworks,” Abbasi told the delegation.

Capitalism champions privatization, particularly that of large state-owned enterprises (SOE’s) in the field of power, fuel and mineral resources. It argues that the state has little role in running such business, and it advocates the free market economy, arguing that SOE’s are run inefficiently, which causes huge losses to the national exchequer and turns them into white elephants. So they claim that privatization of SOE’s will render them efficient and this will benefit the economy. However, the reality is quite different than it is presented. In fact, privatization does not always result in turning the tables around. Former planning secretary, Dr. Akhter Hasan Khan, in his book, “The Impact of Privatization in Pakistan” wrote that “privatization of the state-owned enterprises did not lead to their more efficient management; only 20pc of the units recorded better performance, 44pc functioned as before, while 35pc were found to be worse off. The percentage of worse off public manufacturing enterprises after privatization rose to 42pc” So the perception that a change in the ownership is the only solution to turn around loss making enterprises is not always true. Instead of tackling the corruption, the state sells the energy and mineral enterprise to the private sector. The attempt to eliminate corruption is unsuccessful as corruption emerges in enterprises while under private owners.

However, the most important aspect of this issue is that energy has been declared public property by Islam. RasulAllah ﷺ said, «الْمُسْلِمُونَ شُرَكَاءُ فِي ثَلاَثٍ: الْمَاءِ وَالْكَلإِ وَالنَّارِ» “Muslims have common share in three: water, pastures and fire (energy)” (reported by Ahmad). Islam has placed the duty on the state to take care of the public properties and so as to enable every citizen to enjoy its benefits. Hizb ut Tahrir in its Introduction to the Constitution adopted in Article 140 that, “Every individual from the Ummah has the right to utilise anything from public property, and it is not allowed for the State to permit someone to individually possess or utilise it.”

 

It is the Law of Allah (swt) that is Supreme and Alone Worthy of Nussrah (Material Support)

Pakistan Tehreek-i-Insaf chief, Imran Khan, for the first time on 27 March shared his “understanding” of the much-publicised and discussed “Bajwa doctrine.” In an interview to Aaj News, Imran said “You see that Nawaz Sharif is deliberately attacking the judiciary openly… In this situation, I understand that the Bajwa doctrine vows to stand behind the judiciary for the supremacy of law.”

Neither Nawaz, nor the PML-N, nor the PPP, nor Imran, nor the Bajwa Doctrine will bring change to Pakistan because they all demand the supremacy of the man-made law of Democracy. There is no hope for the Muslim in any one who rules through Democracy, or seeks to rule by it, because that is making corruption on the earth by disobeying their Lord (swt). When ruling by Democracy’s constitution and laws, such rulers flagrantly ignore that which Allah (swt) ordered and openly embrace that which Allah (swt) forbade. Allah (swt) warned,وَإِذَا قِيلَ لَهُمْ لَا تُفْسِدُوا فِي الْأَرْضِ قَالُوا إِنَّمَا نَحْنُ مُصْلِحُونَ “And when it is said to them: “Do not make corruption on the earth,” they say: “We are only peacemakers.” [Surah al-Baqarah 2:11]. In Democracy, laws are made according to the whims and desires of men and women, gathered in a parliament, whereas in the Khilafah every single law must be derived from the Quran and the Sunnah.

The reality of Democracy, its corruption and oppression is apparent to all of us. It has brought the Islamic Ummah only misery and secured our enemies’ predominance over us. Instead of our armed force being made to support the rotten Democracy, our armed forces must give Nussrah (Material Support) for the re-establishment of the Khilafah on the Method of the Prophethood. It is time for real change so we must demand from our fathers, brothers and sons in the armed forces to ally with Allah (swt), His Deen and the Believers, so that this Ummah is predominant again, as it was for centuries before. Allah (swt) said, إِنَّمَا وَلِيُّكُمُ اللَّهُ وَرَسُولُهُ وَالَّذِينَ آَمَنُوا الَّذِينَ يُقِيمُونَ الصَّلَاةَ وَيُؤْتُونَ الزَّكَاةَ وَهُمْ رَاكِعُونَ * وَمَنْ يَتَوَلَّ اللَّهَ وَرَسُولَهُ وَالَّذِينَ آَمَنُوا فَإِنَّ حِزْبَ اللَّهِ هُمُ الْغَالِبُونَYour ally is none but Allah and [therefore] His Messenger and those who have believed – those who establish prayer and give zakah, and they bow [in worship]. * And whoever is an ally of Allah and His Messenger and those who have believed – indeed, the party of Allah – they will be the predominant.” [Surah Al-Ma’idah: 55-56].

 

For the Sake of Re-Election, Rulers Contradict their Own Corrupt Tax Prescriptions

Special Adviser to Prime Minister and State Minister for Revenue, Haroon Akhtar Khan, on 26 March 2018 said that the government intends to review tax structure. While speaking at a pre-budget seminar, organized by the Pakistan Businessmen and Intellectuals Forum (PBIF), Haroon acknowledged that certain taxes are unjustified and would try to convince prime minister for the review of levies such as super tax and or those on share’s dividend.

It is worth mentioning that the minister is finding those taxes unjustified that were implemented by his own government under the pretext of target to increase the tax to GDP ratio of Pakistan. The then Finance minister, Ishaq Dar, in 2013 said during his first budget speech that, “The Tax to GDP ratio declined gradually and is presently at alarming rate of 9%. The focus of the budget 2013-14 is improvement in Tax to GDP ratio finally reaching to 15% by 2018.” It currently stands at 12.5% in 2018 and the ruling party is seeking to review taxation with a view to remove some and it is clear that its desire is not to remove unfair burdens from the people, rather it is looking for re-election.

In a similar vein, public funds for development work are kept unused in non-election years, but then there is a sudden surge in construction in the country during election year. Cities such as Lahore and Peshawar are turned upside down with a sudden surge in construction of roads and bridges in order to show the efficiency of the rulers. So, after four years of implementing an unjustified tax regime, the rulers are now trying to please the business community before general elections. Such election tactics are common in Democracy.  Previously, the government of the PPP  in their last budget before election also decreased back-breaking sales and income taxes  to please the public before elections. Thus, having usurped the people of their rights for years, they will point to road construction and temporary tax relief to secure votes for another term of plundering. And after re-election, the rulers will then increase taxation again and go back to the business of securing their personal fortunes at the cost of the nation.

In Democracy, to continue ruling, the head of state has to contest elections after a certain period of time. The head of state knows that to return to power again he must have the support of the public. So he will manipulate laws in order to secure his right. Therefore, he feels compelled to keep the voters happy, even if he has to deprive the rights or necessary requirements as a consequence.  However in the Khilafah ruling system, the Khalifah is elected once and then contracted to rule by Islam. Without the pressure of re-election, the Khalifah knows that as long as he is implementing Islam completely, he is accomplishing what he has been entrusted, and he does not have to fear of the end to his rule. Therefore, he will not sway to any unjust demands from voters or leave what is required in response to public reaction to it, even within that which is permissible. Moreover, and most fundamentally, he implements Islam to please his Lord Allah (swt) alone and does not have the right to make Halaal Haraam or the Haraam Halaal.  He rules according to that which is revealed and thus being a constant and sincere guardian of the Muslims. Allah (swt) said, وَأَنِ احْكُمْ بَيْنَهُمْ بِمَا أَنْزَلَ اللَّهُ وَلَا تَتَّبِعْ أَهْوَاءَهُمْ وَاحْذَرْهُمْ أَنْ يَفْتِنُوكَ عَنْ بَعْضِ مَا أَنْزَلَ اللَّهُ إِلَيْكَ “And judge between them by what Allah has revealed, and do not follow their desires, and beware (O Muhammad) that they might seduce you from some of what Allah has sent down to you.” [Surah Al-Maaida 5:49]. So you will not find a Khaleefah usurping the rights of the people through unfair taxation in the first place. Nor will you find him neglecting the right of the Muslims that Shariah has obliged upon him and then suddenly waking up at a time when he fears a reaction.