Govt misses all key economic targets

[Sugarcane]

there was proposal in india but dumb people at the top rejected it...kind of a amnesty program...it goes like this ...you have black money just deposit in your bank account...no one will harass you...no raids and such...immediately you can take 25% of the black money from the bank after depositing it as white money...the fifty percent of the black money you deposited will be put in as long term FD for 10 years with a low interest given to it like 1/2 %...after 10 years you can withdraw your black money in full as white money...pakistan can show the way by implementing such plans..and curbing black money...it would set a great precedent in the region.

Our government every couple of years give amnesty scheme to crooks to whiten their black money. Latest one current government give this year. These schemes will not work unless cash transactions are stopped.

 

[IFB]

Our government every couple of years give amnesty scheme to crooks to whiten their black money. Latest one current government give this year. These schemes will not work unless cash transactions are stopped.

That amnesty scheme was tailored for the indian need...the failure of your amnesty program must be reviewed by experts in the field and changes made accordingly...there is no plan that is perfect...none in my humble opinion will give perfect results every time...but if there are no results at all... then the plan is the only thing to blame...forcing someone to hand over their black money never works IMHO...they will find new ways to scuttle the law...case in point being the banning of high value currency in my country .

We have a 5000 bank note,mother of all problems.

OMG i never knew such a high denomination note is circulation in pakistan...wow...should be taken off circulation gradually by increasing the of printing low denomination notes without causing public distress...and since most of those notes would be sitting in some containers and not in circulation...banning it is also prudent...will have a short term positive impact i am sure.

 

[Sugarcane]

That amnesty scheme was tailored for the indian need...the failure of your amnesty program must be reviewed by experts in the field and changes made accordingly...there is no plan that is perfect...none in my humble opinion will give perfect results every time...but if there are no results at all... then the plan is the only thing to blame...forcing someone to hand over their black money never works IMHO...they will find new ways to scuttle the law...case in point being the banning of high value currency in my country .

If I was at charge, below would have been my plan - one time pain to kill cash which is major source of black economy.

1. Make prize bonds digital and link them to CNIC.
2. Make law where consumer banks should be bound to open current account for citizen without minimum balance requirements, and there shouldn't be any charges except cheque book and ATM cards.
3. Make payment terminals duty free and subsidies it to make them cheap.
4. Give tax incentives to telecom companies who complete network coverage across Pakistan in set period, and make data sims and data charges (restricted to payment gateways only) tax free.
5. Make law to where consumer banks should be bound to provide payment terminal services where there shouldn't be any charges on transactions (only minimum fixed monthly charges decided by sate bank to cover operating cost of digital payment services)
6. Introduce 5000, 10000, 50000, 100000 exchange notes which should be used only by banks and financial institutions to settle payments. State bank should track the movement of these exchanges notes.
7. Print more 100, 50, 20, 10 notes.
8. End 500, 1000, 5000 bank notes and ask people to deposit these notes into their bank accounts.
9. Monthly cash withdrawal limit should be set at PKR 15,000

You do above, You will not need to give any amnesty scheme ever.

they will find new ways to scuttle the law...case in point being the banning of high value currency in my country .

Your country discontinued 1,000 note and introduced 2,000 note. Failed logic to discourage cash.

 

[Sine Nomine]

OMG i never knew such a high denomination note is circulation in pakistan...wow...should be taken off circulation gradually by increasing the of printing low denomination notes without causing public distress...and since most of those notes would be sitting in some containers and not in circulation...banning it is also prudent...will have a short term positive impact i am sure.

It's 70% times used by those who want to evade banks and criminals.

 

[Fracker]

In country of 210 million, only 1.6 million file tax returns, among these 1.6 million filers only 6,843 are companies who are in active filer list and 849,260 individual entrepreneurs. So, it's not easy to estimate the informal sector.

That actually a lie which every government sells that Pakistanis don't pay taxes. My house has 10 people and only 2 people earn. Just go and check your own house you will find similar figures. Also Pakistan's average income i.e. more then 50% of people only earn less then 150k and minimum taxable amount is 400K which means 70% of the people earning don't even come under this. On the top there are no taxes on agriculture and around 65% population is linked with agriculture.

So what basis you are even comparing 16 million tax filers Vs total population. It's amazing all government fool Pakistanis to push more taxes rather then giving any relief to people of Pakistan. They only care about their own allowances, their TaDa, and their salaries. They just to fill up their stomachs put more pressure on 16 million tax filers. If they were sincere they should have work to grow average income by increasing the opportunities rather then decrease rupee value.

In 2012 as per my calculations 50% of my spending was going into direct and indirect taxes where only 10-12% was direct taxes. Reset all was indirect taxes.

Stupid excuses.

We have a 5000 bank note,mother of all problems.

Switzerland has 2000 Swiss Frank note (biggest valid note in the market) .

Mother of all problem is business opportunities, trust in the government and Pakistan economy and most important rupee value.

 

[Wikki019]

That actually a lie which every government sells that Pakistanis don't pay taxes. My house has 10 people and only 2 people earn. Just go and check your own house you will find similar figures. Also Pakistan's average income i.e. more then 50% of people only earn less then 150k and minimum taxable amount is 400K which means 70% of the people earning don't even come under this. On the top there are no taxes on agriculture and around 65% population is linked with agriculture.

So what basis you are even comparing 16 million tax filers Vs total population. It's amazing all government fool Pakistanis to push more taxes rather then giving any relief to people of Pakistan. They only care about their own allowances, their TaDa, and their salaries. They just to fill up their stomachs put more pressure on 16 million tax filers. If they were sincere they should have work to grow average income by increasing the opportunities rather then decrease rupee value.

In 2012 as per my calculations 50% of my spending was going into direct and indirect taxes where only 10-12% was direct taxes. Reset all was indirect taxes.

Stupid excuses.

I was listening in some talk show that whole liberty market in Lahore pays only 5 lakh income tax collectively, it is not a lie I personally know dozens of people who are earning quite well have BMW, Honda civics, big farmhouses and paying zero tax, literally zero.

 

[VCheng]

In 2012 as per my calculations 50% of my spending was going into direct and indirect taxes where only 10-12% was direct taxes. Reset all was indirect taxes.

Pakistan has a regressive taxation system where the vast majority of the revenue comes from indirect taxes paid mostly by the lower and middle classes.

 

[Fracker]

I was listening in some talk show that whole liberty market in Lahore pays only 5 lakh income tax collectively, it is not a lie I personally know dozens of people who are earning quite well have BMW, Honda civics, big farmhouses and paying zero tax, literally zero.

Ohh please, stop these rumours shit. Do you think FBR now a days will leave shops without taxes? By average even they pay 20 thousand (which is minimum even in small cities) it will collect much bigger number.

If government is willing to put flat taxes (with remove indirect taxes), whole Pakistan will become filler. But problem is that will not help government and their corruption. So the fillers will continue to get crushed and income tax avoidance will remain the norm.

PS: there is not a single person other then powerful elite like business tycoon, politicians and government employees who avoid taxes. Common middle class can't avoid while lower middle or lower class can't even pay income taxes.

 

[Wikki019]

Ohh please, stop these rumours shit. Do you think FBR now a days will leave shops without taxes? By average even they pay 20 thousand (which is minimum even in small cities) it will collect much bigger number.

If government is willing to put flat taxes (with remove indirect taxes), whole Pakistan will become filler. But problem is that will not help government and their corruption. So the fillers will continue to get crushed and income tax avoidance will remain the norm.

PS: there is not a single person other then powerful elite like business tycoon, politicians and government employees who avoid taxes. Common middle class can't avoid while lower middle or lower class can't even pay income taxes.

I told you I "Personally" know people who are earning millions and they don't give a shit of tax. so cut your crap and accept that we don't give income tax and we have to if we want this country to survive or else it will get bankrupt. And what happens next is you can see Greece and Venezuela.

 

[Fracker]

I told you I "Personally" know people who are earning millions and they don't give a shit of tax. so cut your crap and accept that we don't give income tax and we have to if we want this country to survive or else it will get bankrupt. And what happens next is you can see Greece and Venezuela.

Greece and Venezuela is inevitable but this is not due not paying taxes, but since there is no accountability of paying 4 Trillion taxes with government taking more and more loans and most importantly devaluation of the currency.

And last not least due to absolutely no opportunities of earnings or increase income.

 

[CrazyZ]

Cotton output dropped by 12.7pc against 9.86 million bales in 2018-19 due to shortage of irrigation water, use of low quality inputs such as inferior seed and fertilisers at the early stage of the crop and reduction of 12pc in sown area.

Cotton output is expected to be around 11 million bales this year (numerous reports). Expect a 20% increase this year.

 

[Fracker]

Cotton output is expected to be around 11 million bales this year (numerous reports). Expect a 20% increase this year.

Many newspapers were pointing at decrease. So all expectations of yours are wrong.

https://www.dawn.com/news/1467721

 

[CrazyZ]

Many newspapers were pointing at decrease. So all expectations of yours are wrong.

https://www.dawn.com/news/1467721

Old data. This year is expected to be much better. Which newspaper is correct? Not sure, but Dawn is a questionable source. Very negative reports all the time.

https://fp.brecorder.com/2019/06/20190608484017/

 

[Surya 1]

Govt misses all key economic targets
Kalbe Ali Updated June 09, 2019

ISLAMABAD: Pakistan’s economic growth in the financial year ending in June is expected to hit 3.3 per cent, well below the target of 6.3pc set by the previous government, as the government has failed to meet targets in nearly all sectors, according to the Economic Survey.

The Economic Survey of 2018-19 is scheduled to be officially released a day before the next year’s budget on June 11, but some of its details were learnt by Dawn on Saturday.

It indicates that livestock is the only sector whose growth went slightly above the official target while all other sectors performed below expectation.

A sharp decline was witnessed in the industrial sector that registered a growth of 1.4pc against the target of 7.6pc despite the fact that power generation witnessed an increase as several power plants and other power sector projects were completed.

Also, the manufacturing sector slid by 0.3pc and the large scale manufacturing (LSM) showed a negative growth of 2pc against the target 8.1pc.

Growth plunges to 3.3pc, as per Economic Survey

The service sector grew by 4.7pc against the target of 6.5pc, while the construction sector achieved the growth of 7.6pc against a 10pc target.

Delays in making key policy decisions by the government, including the one about going to the International Monetary Fund (IMF) for a bailout package and those related to the construction and industrial sectors, created confusions among investors, experts believed.

The only achievement made by the government during this period was in the livestock sector that grew by four per cent against the target of 3.8pc though policies of the previous government at Centre and in the provinces played a key role in this regard.

An official of the national food security ministry said extensive efforts were made to control foot and mouth disease (FMD) and the Food and Agriculture Organisation (FAO) had recognised Pakistan’s success. “This has increased their survival rate and the number of livestock has improved across the country, besides the ‘livestock loans insurance scheme’, launched in 2013, too, encouraged more people to raise farm animals,” the official added.

As the agriculture sector grew by only 0.8pc against a 3.8pc target, the massive decline was mainly attributed to unfavourable weather conditions.

“Pakistan will miss the target of 25.8 million tonnes of wheat produce this year because of untimely rains and storms. Similarly, the drought-like situation in some areas of Sindh and Balochistan, too, had an impact on the overall agriculture sector,” the official added.

Cotton output dropped by 12.7pc against 9.86 million bales in 2018-19 due to shortage of irrigation water, use of low quality inputs such as inferior seed and fertilisers at the early stage of the crop and reduction of 12pc in sown area.

Rice crop, too, decreased by 3.3pc, sugarcane by 19.4pc against the last year’s production, while low water availability led to 3.1pc and 17.9pc reduction in the sown area for rice and sugarcane, respectively.

Commenting on the first year performance of the government, Pakistan Muslim League-Nawaz (PML-N) Information Secretary Marriyum Aurangzeb said Prime Minister Imran Khan should read PML-N’s first year economic survey and learn the difference ‘between the performance of an elected government and a selected regime’.

She said that the PML-N had achieved more than the targets set for its first year in government while the Pakistan Tehreek-i-Insaf (PTI) regime had started registering a retraction on all economic indicators instead of progress.

“The Economic Survey of Pakistan’s 2018-2019 is an attested certificate of Imran Khan’s incompetence, failure and inability,” she said, adding that Mr Khan should resign in national interest and save himself the embarrassment of being ousted by the people of Pakistan.

Responding to the criticism of the main opposition party, an official of the finance ministry said that ambitious targets were set by the outgoing PML-N government just before the general elections, while the incumbent government took office in August 2018.

Published in Dawn, June 9th, 2019

Pakistan should set realistic targets backed by fimm well conceived plans to achieve it. Pakistan is currently not in position 2 to achieve growth rate rather Pakistan Pakistani should set realistic targets such as water conservation, solar electricity , agriculture, improve the quality of soil etcetera and focus on skill development and primary education that will pay you in long run.

 

[CrazyZ]

In order to set targets you need to have good information. This survey says cotton production is around 9 mill bales but a ginners association says cotton production is at 11 mill bales. Who is accurate. I don't know....but the bureaucrats are probably wrong in my opinion. Either laziness or political manipulation of the numbers.