Do perceptions matter?

Exercise of unquestioned power by the parliament is a philosophy propagated by self-serving democrats - the lot that rules Pakistan. And there is a reason there for; given immunity, democrats can use state authority as the cover for their mismanagement and corruption. That using this cover undermines the perception of the state doesn't bother them.
The democrats (especially those in power) don't bother about the slide in Pakistan's global ranking on every yardstick, which reflects their 'patriotism'. They believe that denying ground realities and misreporting key economic indicators (to hide their own self-serving deeds that are steadily impoverishing Pakistan) will sustain them in power.
Politicians keep blaming the internal security scenario as 'the' cause of slide in Pakistan's risk perception. Rarely do they talk about institutional weaknesses (in market regulation and in lower judiciary that escalated under democratic dispensations) as no less a cause of this adverse trend although it is compounding the misery caused by the threat of terrorism.
The government's Memorandum of Economic & Financial Policies (MEFP) accompanying the letter of intent submitted to the IMF in June while seeking the fourth tranche of the $6.5 billion loan programme, admitted that GDP growth during 2013-14 was expected to be around 3.3%, but advised the parliament and the federal cabinet a higher growth estimate.
For 2014-15, the National Economic Council was persuaded to approve a GDP growth rate of 5.1 percent but in the MEFP, it was admitted that rate could be 4 percent, since downside risks to growth linger on. Now the Finance Ministry says that growth rate in 2013-14 was 4.3 percent, and its projection for 2014-15 is 5 percent, and corrections of these "inadvertent" errors in the MEFP have been notified to the IMF.
Has that really been done, or is it to hush-up media's exposure of the truth? While the government blames its opponents for blunting the 'economic revival' it has heralded, realities are never shared with the lawmakers. It is highly likely that GDP growth in 2013-14 was 3.3 percent - worst in years - and lower than the estimates of several economic research institutes that predicted it to range between 3.5 and 3.8 percent.
In spite of "appreciation" of the rupee, inflation didn't come down; it kept rising, though FBS estimates thereof suggest otherwise. Pursuing the IMF-assigned targets for containing fiscal deficit, to compound the miseries of the ordinary, the government is withdrawing subsidies without improving system efficiencies to at least sustain power and energy prices at their present level.
Indications are that the component of un-accounted for gas in gas tariff will be increased to 9 percent from the current 4.5 percent, and Discos allowed to charge 15.75 percent in power tariff on account of line losses compared to 12.82 percent at present. The latest discovery is theft (component of the fuel price) of petroleum products transported from one PSO depot to another.
What the government never discloses are the steps taken to cut losses that inflate energy prices - a reflection of democrats' proclaimed immunity to accountability? While the Gas Infrastructure Development levy too is being increased, no disclosures have been made about what efficiencies this levy has helped fund, and what is the future of the Pak-Iran gas pipeline?
According to a petition before the Supreme Court, NAB sent a reference in the Tauqir Sadiq case against the top brass of Sui Southern Gas Company (SSGC) and an accountability court in Islamabad also charge-sheeted SSGC's top brass on May 26, but the charge-sheeted staffers still hold key positions in SSGCL because the Petroleum Ministry hasn't taken action against them.
The Auditor General of Pakistan and Accountant General Pakistan Revenue have reportedly asked NAB to probe Finance Ministry's release of Rs 290 billion to oil marketing companies against their Price Differential Claims, by directly advising the State Bank of Pakistan (SBP) to pay this amount (reportedly on Prime Minister's direction), coolly disregarding the provisions of CGA Ordinance-2011.
Under section 5(b) of the CGA Ordinance-2011, these provisions stipulate that the Controller General shall authorise payments and withdrawals from the consolidated fund and federal government's bank accounts against approved budgetary provisions after Auditor General's prescribed pre-audit checks. This mandatory provision was violated by the Finance Ministry.
The Finance Ministry has decided that unpaid loans worth Rs 106 billion that the state-owned House Building Finance Company and Zarai Taraqiati Bank owe to the SBP, be converted into these banks' equity. The step implies that taxpayers (neither the loan defaulters nor those responsible for extending these loans) must pay for these losses via higher taxes.
To manifest the state's immunity yet again, in its June 30 meeting, the Board of Public Procurement Regulatory Authority (PPRA) exempted PIA from applying PPRA rules in acquiring seven aircraft on lease. Given the stories about corrupt practices adopted in the contracts it entered into earlier, should PIA have been allowed this freedom? The Managing Director PPRA explained that, to invoke Rules 42(d) (iii) of PPRA 2004, PPRA's permission is not required; procuring agencies can invoke this rule if they 'meet' the pre-conditions mentioned therein. Also, that PPRA rules are 'self-regulatory' if the procuring agency is 'competent' to act without consulting the PPRA. Does all this apply to PIA?
According to media reports, in April 2014, Economic Co-ordination Committee of the Cabinet had warned PIA not to relax any terms and conditions in the acquisition of aircraft on dry lease (which could lead to litigation) even with the approval of its Board of Directors. Impliedly, not to adopt controversial routes, but did not prohibit violation of the PPRA rules.
The Railways Ministry too sought exemption from PPRA rules for hiring consultants to conduct a feasibility study of its Main Line (ML-1). Although the ministry was forced to withdraw its request, given the regime's track record, this request may eventually be accepted because, under the 'Pakistani brand' of democracy, democratic regimes can do anything.
Transparency International Pakistan alleges that IGP Sindh procured 20 armoured vehicles at a cost of Rs 1.24 billion from a Serbian supplier without inviting tenders, and that Sindh's fire department purchased 184 grossly over-priced fire tenders for Rs 6 billion. Both issues were reported to Sindh's Chief Minister and Chief Secretary, and Sindh's Public Procurement Regulatory Authority, but no action was taken.
Besides the many lingering scams whose perpetrators are yet to be punished, the above cases are tarnishing Pakistan's image. The worst part is that they portray a harsh unending reality - that instead of learning lessons from the past, members of each regime tread the same rotten path of cronyism, corruption, and self-enrichment. Doesn't all this distort the state's perception beyond repair?