Pakistan $1 Trillion Economy

[xyxmt]

Sorry bro, but Toronto the fifth largest city in North America and an economic powerhouse in Canada, generating $157 billion in 2013 and 148 billion 2014 or 10 per cent of Canada’s GDP.

Its actually 3rd largest economic zone after New York and LA. Just because Toronto is 3rd or 5th doesnt mean Pakistan has to be below it. Just imagine how big Karachi is as compared to Toronto, leave other cities alone add to that agricultural output

 

[ito]

According to IMF, by PPP Pakistan will cross $1 trillion by 2017, However it might take another 20 years for Pakistan to cross $1 trillion by nominal.

The worst part is Pakistan's growth. At just 4.2% this year it absolutely sucks. India being 8 times larger is growing at 7.5%, almost double the Pakistan growth. And according to IMF, by 2020, an average Indian will be earning 30% more per capita GDP than an average Pakistani.

http://www.imf.org/external/pubs/ft/weo/2015/01/pdf/text.pdf

List of IMF ranked countries by past and projected GDP (PPP) - Wikipedia, the free encyclopedia

List of countries by past and projected GDP (PPP) per capita - Wikipedia, the free encyclopedia

 

[Indus Pakistan]

Is that number right? Pakistani Military alone has close to a million personnel, other government(federal and provincial) agencies would have several hundred thousand people on their payroll. Are you telling me even the government employees aren't paying their taxes?

Read this ...Less than 1 percent of Pakistanis pay tax – Survey | Aboard The Democracy Train

comparison between Pakistan economy which is easily superseded by a state like Maharashtra.

You mean the documented economy. There are entire regions that are beyond any tax regime. I suspect the number of taxpayers in entire FATA probably can be counted on your fingers . It is not much better in most of Balochistan and large parts of Khyber Pak, interior Sindh and Punjab. Most farmers large or small are safely outside the system. Frankly it is ridicalous.

Everybody has sprouted beards but non are decent enough to even register with FBR indeed it is other way around all the traders will create ruckus and strikes even just the mention of tax. In a country of 190 million people this a scandal that nobody wants to talk about.

Huge housing estates are sprouting everywhere [ Peshawar, Islamabad, Lahore, Faisalabad the list goes ) so question is these middle class people must be making money to buy houses and cars but non are registered with FBR. Why the FBR does not make these people account for the money is beyond me. Corruption and incompetence in equal doses perhaps.

Click on this: Google Maps
Google Maps

TAX AND AID: This scandal is likely to encourage international donors who want the country to widen its tax base before asking for more aid.

Only 0.6 per cent of the population pays taxes in Pakistan, as against 4.7 per cent in India, 58 per cent in France and 80 per cent in Canada.

This is despite the fact that the government has doubled salaries of tax officials in the hope that it will improve the compliance level, but to no avail.

Pakistan continues to have the lowest number of active taxpayers per tax administrator in South Asia — 64. In India, taxpayers per tax administrator share stands at 537, in Sri Lanka 232, in the United States 1,990 and Switzerland 3,182.

* 4.7 divided 0.6 is nearly 8. Which means 8 times more Indian's pay tax then Pakistani's. This is terrible and we are not going anywhere without fixing this problem. If this keeps up we will have more tax inspectors then taxpayers.

 

[posedion]

It depends on how quickly it can make peace with India from than on may be five years and the Pak economy will be a trillion dollars...... left to the current state it will take another 30 years but By that time a trillion dollar will be worth half your GDP TODAY

 

[definitelynotIndian]

Not all countries have the same problem to the same extent. In Pakistan's case it is very severe issue, same level as Greece, probably worse than Greece. I read a BBC article that reported only 2% of Pakistani population filed income tax in 2013(?) imagine if 50% or 75% of the population paid the right income tax, that would be a tremendous boost of hundreds of billions of USD to the Federal Government in turn boosting GDP because government spending would increase in multitude.

Other countries have a much larger tax net. To Pakistan's credit the current Government is widening the tax net as we speak, more businesses and citizens are being documented and filed and put into taxation. In fact, the recent widening of the tax net is the reason why Pakistan was able to make new defense procurements.

People do not pay taxes in an unorganised economy. In India as well previously when people used to work in grocery shops of Uncle/aunt all of them had informal jobs and none of them paid any taxes. Now at least in big cities those shops are disappearing and people work in malls, hyper markets where every one employed is given regular salary after the taxes already paid for. The more you organize/advance your economy the more is tax collection.

 

[MULUBJA]

Pakistan nominal for 2015-16 is $320 billion.

I worked it out.

If pakistan Economy increases by 5% per anum than it will take 23.5 years to increased to 1 TR USD from 320 in 15-16

@6% P A --19.5 years

@7% P A--16.84 years

@8% P A----14.8 years

@ 4% P A )Current rate)--29 years

@ 3% P A ---38.5 years

@2% P A-- 57.5 years

@9% PA 13.22 years

@10P A---12 years

If Pakistan's economy increases @10% PA than it can be one Tr economy by 2028. @5% it shall be a Tr USD economy by 2040 provided Pakistani Rupee do not depreciate further.

 

[Rajesh12379]

Anecodotal evidence will show any observer. Everytime I go to Pakistan I see huge housing estates sprouting everywhere and cars, consumer goods on sale which does not even by the slightest fit with what figures I read on papers. So if people are not making money where are they getting the money to spend on cars, houses, phones? I just checked and car ownership rates are higher in Pakistan then India, extreme malnutritution is less in Pakistan then India, sanitation access is better in Pakistan but the crazy gross domestic capita is lower then India.

Does this add up? So if figures are to be believed Indian's make more money but then don't bother buying cars, don't bother feeding their children, don't bother building sanitation facelities but hide the money under the bed ....

Yes of course .....

Cars -

Pakistan - 57
India -18

It's an interesting point. Indian car sales per annum are more than 10 times that of Pakistan. Just Delhi sells twice the number of cars than the whole of Pakistan.

India sold more than 1.8 million cars in 2014 (it has been flat since 2010 for various reasons, before that it was growing fast and will pick up again as interest rates start going down)
Pakistan sold 176000 cars in 2014.

In comparison, just Delhi sells twice this number of cars every year.

focus2move .co* / pakistan-car-market-statistics-top-brands-and-models-ranking/
(Can't add links)

The country’s population has quadrupled over the past five decades, to 180 million people, but car ownership stood at just 12.6 per 1,000 inhabitants in 2012, and is unlikely expand rapidly in the near future. Domestic production, which consists of local assembly of vehicles from imported parts and kits, has capacity of only 250,000 vehicles per year. However in 2012 sales were only 176.000 and this year are projected around 150.000 with only 60% of production capacity covered.

Just correcting your facts. No intention in any comparison games or pointing out your lack of nutrition or Thar deaths or 40 million people without toilets or suicide bombers available on sale with falling prices due to supply demand mismatch etc.That is not the topic and is of no interest to me. I would rather focus on many issues within India.

 

[Storm Force]

Lets not talk about Indian gdp they are economic giants with huge middle class abd massive exports too and enormous reserves.

Without fdi into Pakistan it's impossible to predict wat will happen in Pakistan.

Pakistan growth per annum is far slower than even bangladesh never mind India at present.

You can play with nos all you lke but the country has enormous internal stri

 

[Arsalan]

wait a minute, i need some help please...

i have read all the article and have noticed various sources mentioning that in Pakistan less then 1% are paying tax, no i do not simply understand that. For me, our government employes are MORE then 1% of our population. If it is so, then there is no way they cannot pay tax as it is deducted from there income before the pay is given. So why is it that there are less than 1% taxpayers specially considering that many people that are not in gov service also do pay taxes, however small that number may be but together with the gov employes that should be more then this 1% . I am not saying that more then 1% say 2% is a great achievement, it is still shameful but cannot understand this figure.

i hope someone can clarify!

 

[Rajesh12379]

I think what is meant is that less than 1% pay direct taxes (income tax for individuals). Every citizen pays the indirect taxes when he purchases/consumes any good or service in the country. This probably is a bigger tax for most people than the income tax they end up paying (or not paying).

 

[definitelynotIndian]

Lets not talk about Indian gdp they are economic giants with huge middle class abd massive exports too and enormous reserves.

Without fdi into Pakistan it's impossible to predict wat will happen in Pakistan.

Pakistan growth per annum is far slower than even bangladesh never mind India at present.

You can play with nos all you lke but the country has enormous internal stri

If India and Pakistan start doing business Indian companies can invest a lot in Pakistan creating jobs for locals. Lots of Indian start ups have global ambitions and want to expand.

 

[SrNair]

All the official figures are garbage.There is always certain amount of slip in the official figures and the reality on the ground. Not everybody declares their true income. That why we call the unofficial economy the 'black economy'.

However what marks out Pakistan is magnitude of tax evasion even by Third World standards. According to FBR figures there are 856,987 taxpayers in Pakistan in a country of 190 million people. That has got to be world record. That is well below 1% paying tax in Pakistan.

Less than 1 percent of Pakistanis pay tax – Survey | Aboard The Democracy Train

Given the monumental incompetance by FBR as demonstrated by the numbers of most of the 856,987 taxpayers will be paying nominal amount of tax and getting away with 'murder'. Therefore Pakistan's tax iceberg is differant from most because larger mass of it is submerged. This is the point to keep in mind and not compare it to Canada, USA or UK. What is the exception in UK is ithe norm in Pakistan.

Anecodotal evidence will show any observer. Everytime I go to Pakistan I see huge housing estates sprouting everywhere and cars, consumer goods on sale which does not even by the slightest fit with what figures I read on papers. So if people are not making money where are they getting the money to spend on cars, houses, phones? I just checked and car ownership rates are higher in Pakistan then India, extreme malnutritution is less in Pakistan then India, sanitation access is better in Pakistan but the crazy gross domestic capita is lower then India.

Does this add up? So if figures are to be believed Indian's make more money but then don't bother buying cars, don't bother feeding their children, don't bother building sanitation facelities but hide the money under the bed ....

Yes of course .....

Cars -

Pakistan - 57
India -18

List of countries by vehicles per capita - Wikipedia, the free encyclopedia
WHO | Fast facts
Indian poverty levels higher than Pakistan's, says UN report - Telegraph

This is what happens when you trying to see one side.Recently GoI is implementing a Gold Monetization scheme.
Do you know anything about the gold
possessed by Indian households ?
According to the govt that is around 20000 + tonnes.
Now you cant buy gold without money .Our people are so much obsessed with gold.

My cousin has around 2 lakhs salary ,he is a NRI working in GCC.But he dont have to pay taxes.Almost all NRIs in all class do the same thing .
You know the we have a remittance of
around 70 billion $ even though that is just a 3% of our GDP.
So that benchmark of percapita vehicles is not applicable in our case.
Every house holds will have around a gold of at least one lakhs.
Most of the parents will give atleast half kilo of gold for their daughters marriage.Even if they are common people.


On topic akistan has a good black economy.But that is phenomenal in all third world nations including India .
So t you cant count that on a nations income.

 

[Pulsar]

1st question should be how long will it take to make the govt to work seriously AND SINCERELY! Once ALLAH bestows that miracle on us then we can start predicting other things

Correct! God helps those who help themselves. Please ask your politicians to stop politicking and concentrate instead on development and good governance. If this paradigm shift takes place then Pakistan could become a $1 trillion economy within this decade.

 

[ito]

wait a minute, i need some help please...

i have read all the article and have noticed various sources mentioning that in Pakistan less then 1% are paying tax, no i do not simply understand that. For me, our government employes are MORE then 1% of our population. If it is so, then there is no way they cannot pay tax as it is deducted from there income before the pay is given. So why is it that there are less than 1% taxpayers specially considering that many people that are not in gov service also do pay taxes, however small that number may be but together with the gov employes that should be more then this 1% . I am not saying that more then 1% say 2% is a great achievement, it is still shameful but cannot understand this figure.

i hope someone can clarify!

Because what @Atanz posted is wrong. Not only do government employees but all the employees of organized private sector pay taxes as taxes are cut before employees get salaries.

The Critic's Den: Pakistanis are most Heavily Taxed People in South Asia

 

[Bobby]

All the official figures are garbage.There is always certain amount of slip in the official figures and the reality on the ground. Not everybody declares their true income. That why we call the unofficial economy the 'black economy'.

However what marks out Pakistan is magnitude of tax evasion even by Third World standards. According to FBR figures there are 856,987 taxpayers in Pakistan in a country of 190 million people. That has got to be world record. That is well below 1% paying tax in Pakistan.

Less than 1 percent of Pakistanis pay tax – Survey | Aboard The Democracy Train

Given the monumental incompetance by FBR as demonstrated by the numbers of most of the 856,987 taxpayers will be paying nominal amount of tax and getting away with 'murder'. Therefore Pakistan's tax iceberg is differant from most because larger mass of it is submerged. This is the point to keep in mind and not compare it to Canada, USA or UK. What is the exception in UK is ithe norm in Pakistan.

Anecodotal evidence will show any observer. Everytime I go to Pakistan I see huge housing estates sprouting everywhere and cars, consumer goods on sale which does not even by the slightest fit with what figures I read on papers. So if people are not making money where are they getting the money to spend on cars, houses, phones? I just checked and car ownership rates are higher in Pakistan then India, extreme malnutritution is less in Pakistan then India, sanitation access is better in Pakistan but the crazy gross domestic capita is lower then India.

Does this add up? So if figures are to be believed Indian's make more money but then don't bother buying cars, don't bother feeding their children, don't bother building sanitation facelities but hide the money under the bed ....

Yes of course .....

Cars -

Pakistan - 57
India -18

List of countries by vehicles per capita - Wikipedia, the free encyclopedia
WHO | Fast facts
Indian poverty levels higher than Pakistan's, says UN report - Telegraph

Sure India is not as rich as you are...wonder when India will become $1 trillion economy....

keep Brain Masturbating