KARACHI: The founding vision of Pakistan as a welfare state remains unrealized due to a persistent lack of political will, according to Pasban Democratic Party Chairman Altaf Shakoor. Speaking on Friday, Shakoor highlighted systemic political barriers as the primary impediment to the nation's social development, despite nearly eight decades of independence.
According to Pasban Democratic Party, Shakoor emphasized that political regimes have failed to dismantle elite patronage systems and broaden the tax base, crucial steps for establishing a welfare state. He criticized successive governments for treating social protection as an act of political benevolence rather than a constitutional right, and for relying on short-term handouts instead of implementing rights-based systems.
Shakoor pointed to the escalating national debt, which exceeds PKR 81 trillion, as a significant obstacle. With debt servicing consuming nearly 47 percent of the federal budget, essential spending on public services is persistently crowded out. He noted that under mandates from global lenders, social security expenditures are often the first to be reduced, impacting low- and middle-income families the hardest.
The tax framework, Shakoor argued, exacerbates the fiscal squeeze by shielding the wealthiest segments from taxation. The tax-to-GDP ratio remains critically low due to exemptions and reluctance to tax high-value sectors. Without legislative drive to enforce progressive wealth taxation, the state remains underfunded.
Drawing comparisons with Western welfare states and regional peers, Shakoor asserted that political priorities, not wealth, determine welfare state success. He cited examples like Sri Lanka and India, which have achieved high human development indicators through universal coverage and digital infrastructure.
Shakoor also highlighted the challenges posed by Pakistan's rapidly growing informal economy, which includes over 70 percent of the non-agricultural workforce. The lack of political determination to integrate these workers into a social protection scheme leaves them vulnerable to economic fluctuations.
To address these issues, Shakoor called for stopping new loans, broadening the tax base, and codifying universal protection. He stressed the need for empowering local governments to ensure efficient delivery of services and concluded that Pakistan's transition to a social welfare state is a test of political intent. Without a commitment to equitable taxation, responsible debt management, and prioritizing human dignity, the founding vision of a prosperous nation will remain unrealized.