he new coalition government will have little financial space. It will have to rely on loans for almost all its initiatives. The situation could ease a little if the government ensure good governance, demonstrating a commitment to social justice, privatization of burdensome state enterprises, tax compliance and accountability.
Many of the problems faced by Pakistan currently are on account of poor governance. In well-governed societies the political leaders simply outline their priorities. The rest is left to the bureaucracy. If the policies are in conflict with the law, the bureaucrats inform the government leaders and do not obey that part. The bureaucrats are bound to obey all legal orders of the ruling party but they refuse to obey illegal orders.
In Pakistan, the bureaucracy tends to obey all commands of the party or person in power. This allows all kinds of criminals to find patrons among the political class who then ensure their protection. For this, senior bureaucrats get to enjoy similar impunity and many develop rent networks.
Many laws have been enacted by the parliament to improve governance that are not enforced in letter and spirit. By and large, the quality and consistency of enforcement depends on the wishes of the government leaders. The law takes its course when the poor violate it but influential people may sometimes have room to violate it and not be penalized for that. Luxury cars violating traffic rules without being apprehended is a common sight but when a motorcyclist violates the same rule he is apprehended.
The rich get gas and power connections promptly; the poor have to wait for months. The utility company rules state that every applicant will get a connection within a specified time. There are many formalities and procedural requirements that influential people get through in a day. The poor take a long time meeting the same requirements.
Good governance means that the rules are followed uniformly. If someone........