Tax in Pakistan: Why the Third World Will Never be Like the First World

The liberal religious belief that the Third World can be elevated into becoming like the First world through “education and development” has been rudely shattered once again with the latest “economic” news from Pakistan.

With a population exceeding 180 million people, Pakistan is the sixth most populous country in the world, has the seventh largest standing armed forces in the world, and is also a nuclear power.

It has a semi-industrialized economy which is the 27th largest in the world in terms of purchasing power and 47th largest in terms of nominal GDP.

Pakistan’s estimated nominal GDP as of 2011 is US$202 billion.

All of these factors are, by any First World standard, exceptional and that nation should in theory be one of the most advanced and developed nations in the world.

However, the socioeconomic indicators tell another story. Pakistan’s own Human Development Index (HDI) shows that 60.3% of Pakistan’s population lives on under $2 a day (compared to 79% in nearby India and 81.3% in nearby Bangladesh) and 22.6% of Pakistanis live under $1 a day (compared to 24.9% in India and 49.6% in Bangladesh).

According to the United Nations Human Development Report, Pakistan’s human development indicators, especially those for women, fall significantly below those of countries with comparable levels of per-capita income. Literacy among women is around 43 percent, and for men around 65 percent.


Pakistan’s major cities and urban centers are home to an estimated 1.2 million “street children” who are infamous for substance abuse and petty crime.

A new report by the British parliament’s International Development Select Committee has revealed that “corruption is rife” in Pakistan and that only 0.57 percent of Pakistanis pay income tax.

This means that out of a population of 280,000,000, only some 1,026,000 actually pay tax, and most of those are likely to be civil servants from whom tax is automatically deducted by the government paying them their salaries.

According to the British parliament report (issued as part of a study of British foreign aid to Pakistan, which will increase to £446 million in the 2014/15 budget) most Pakistani parliamentarians, including President Asif Ali Zardari, former Prime Minister Yusuf Raza Gilani, and Interior Minister Rehman Malik, do not pay any tax at all.

According to the report, around 70 percent of Pakistan’s members of parliament do not file a tax return.

“Corruption is rife in a social order based on patronage and kinship networks. Pakistan’s rich do not pay taxes and exhibit little interest in improving conditions and opportunities for Pakistan’s poor,” the report said, before going into a long-winded and liberal explanation as to why UK foreign aid was still needed in that nation.

The situation in Pakistan sums up perfectly why the Third World will never be like the First World, no matter how much (First World-originated) technology and development may be available.

Any European nation which displayed Pakistan’s level of economic growth would never have the sort of deprivation and malaise which infects that Asian nation—and no amount of liberal bleating could argue with that simple fact.

The Third World will never be the First World because of an inherent racial difference in psychology and social responsibility between First and Third World populations.

This difference makes the mass transfer of Third World populations to the First World (via legal and illegal immigration) an even more pressing problem: if it continues, the First World can soon expect to be dragged down to the level of the Third.

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      1. Hhmm! That`s supposed to be how it works.
        Yet once voted into power collective amnesia descends and buggers up electoral promises.

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