


38% of households in Pakistan have one person who is either a government employee , a government pensioner or a social safety net cash transfer beneficiary.
Analysis by Gallup Pakistan Digital Analytics shows nearly 4 in 10 households benefit or are heavily linked to the state in terms of a cash relationship . They are either on government salary pay roll , government pension pay roll or recipient of government cash transfer scheme.
In a country where the tax to GDP ratio is barely 10% should the state have such large foot print.
If we add households who benefit from free government services (health , education) the proportion would rise significantly.
Is this not the reason why we are in debt to the world? Should this issue be fixed?
A more nimble state that concerns itself with only public goods which cant be provided by private sector for example law and order , justice and defence is in my view a way forward.
A state that builds roads through FWO , sends courier parcels through Pakistan Post , builds dams through WAPDA , dispatches electricity through Discos , education through 100,000 plus schools and hundreds of Universities , will in the end be in debt like ours is.
More open debate is need of the hour as we discuss system reset.