Pakistan introduces expatriates' bond to handle payment crisis

[bluesky]

Pakistan introduces expatriates' bond to handle payments crisis
Published: February 01, 2019 17:33:20

In this Reuters file photo, cricket star-turned-politician Imran Khan, chairman of Pakistan Tehreek-e-Insaf (PTI), speaks after voting in the general election in Islamabad.

Cash-strapped Pakistan on Thursday launched a bond scheme for its citizens living overseas, aimed at generating funds in foreign currencies to help bridge a balance of payment crisis.

The Build Pakistan Certificates scheme offers returns in dollars on three- and five-year paper yielding 6.25 per cent and 6.75 per cent, respectively, the finance ministry said.

The minimum investment is $5,000 with no upper limit, it said. Pakistan’s global diaspora numbers around 7.6 million, according to government data.

The country faces an economic crisis due to depleting foreign reserves and a widening current account deficit.

It has secured some loans and oil on deferred payments from Saudi Arabia and United Arab Emirates, and is in negotiations for an IMF bailout.

“There was record high fiscal deficit. We knew as outsiders that country is crumbling. As insiders we saw the extent of how bad the affairs were,” Prime Minister Imran Khan said at the televised launch of the bond programme.

Khan urged investors in the scheme to take their interest in local currency rather than dollars.

The finance ministry said the certificates would be exempt from withholding tax and Islamic charity deductions.

They are the second such scheme introduced this week after authorities announced plans for an Islamic bond to generate 200 billion rupees ($1.45 billion) to help pay down power sector debts, reports Reuters.

https://thefinancialexpress.com.bd/...tes-bond-to-handle-payments-crisis-1549020856

 

[Skull and Bones]

How can Pakistan sustain a high interest bond repayment after its maturity, remains to be seen.

 

[TruthSeeker]

Rather than buy Pakistani bonds, expatriates should just send hard cash to the Pakistani Government. Forget the "loan" part, just help out their "fatherland" with cash.

 

[Azadkashmir]

Rather than buy Pakistani bonds, expatriates should just send hard cash to the Pakistani Government. Forget the "loan" part, just help out their "fatherland" with cash.

lolz that HAS BEEN DONE FOR 20 TO 30 YEARS.

 

[AZADPAKISTAN2009]

The problem is many Western Banks in Pakistan are harassing Pakistani who live overseas who have their accounts in Pakistan , by sending them letters to declare their personal info to them passport data so their Pakistani Bank account can be shared with foreign countries

And Pakistan is allowing this to happen I know of case where Standard charter bank in Pakistan is sending such letters to Pakistani who keep their funds in Pakistan (life savings)
The person in question is almost 70+ in age (Luckily for person the funds in account were below the allowed limit in their foreign country so no reporting is needed)

But still for Pakistan , to allow such banks to openly discourage Pakistani National ID card holders to open a permanent account - it is a bit messed up

Seen those letters first hand and I was like wow this is sure messed up so Pakistanis can't open a account in Pakistan , if they do and leave some funds in saving they will get letters from Foreign Bank in Pakistan to give details about passport so this info can be passed to their Foreign resident country (Looks like a spy network to me)

So when the banks operating in Pakistan are treating Foreign Based Pakistani , how can Pakistanis overseas trust opening new accounts in Pakistan

These banks are acting as foreign agents inside Pakistan
I see it as a an attempt to discourage Pakistanis to Open Saving Accounts in Pakistan for future retirement or just merely helping invest in Pakistan (it is their hard earned money, so what if they live overseas)


Pakistan really need to put leash on these foreign run banks and improve customer service

Already not many keep a bank Account in Pakistan due to fear or theft , or Bank Manager stealing their funds or countless other problems like Bank being sold for 1 rupee to nawaz sharif's friend , such actions only discourage hard working Pakistanis to keep funds in Pakistan


For public info :
I do not have a bank account in Pakistan I wanted to open one feel good account in Pakistani bank so I can do stock trade, but since I heard this story I was discouraged

There is 0% chance I will be buying such certificates due to the story I mentioned above

Don't want to be double taxed
a) Once in Pakistan
b) Once in Foreign country


These kind of stories hurt Pakistan when you view it from scope of effect on Million + users



As an investor I hope for 100% customer service from Banks

 

[TruthSeeker]

lolz that HAS BEEN DONE FOR 20 TO 30 YEARS.

Well, apparently they haven't done it enough!! OR, maybe, the Government of Pakistan has not been a good steward of the resources it has been given???

 

[BRAVO_]

here is as simple trick ... they should allow all overseas pakistani to send back home one car for their family provided overseas pakistani will deposit the amount in US Dollar equal to the price of that car to a any pakistani bank and they will not withdraw it for a specific time .... this step will further boost the competition in local market which is monopolistic controlled by three major car assemblers in paksitan, who are supplying sub slandered cars on a very high profit

but what an irony every govt asked support from overseas Pakistanis but in return they never give them any facility , so question is why someone send back remittance ??? knowing that money would be eventually launder as usual ....

 

[AZADPAKISTAN2009]

Pakistan currency limit for travellers raised to Rs10,000
https://www.dawn.com/news/1355914/pakistan-currency-limit-for-travellers-raised-to-rs10000


KARACHI: People travelling to or from Pakistan can now carry Rs10,000 in cash after the State Bank of Pakistan (SBP) raised the limit on Tuesday by more than three times.

In case of India, however, the ceiling has been increased to Rs3,000 from Rs500, the SBP said in a statement.

The new limits are particularly for Pakistani banknotes. A passenger can carry up to $10,000 or equivalent notes of another currency while going abroad, according to SBP’s foreign exchange rules.


This won't cover 3-4 days stay in hotel + food + taxi (10,000 rupee)
And god forbid if you miss your connecting flight and have to buy a replacement ticket

It costs 40,000-80,000 dollar for University pays for people moving abroad to study I wonder what kind of comical scenarios they go thru in Pakistan

All the money rules in Pakistan are from 1950's when 1 rupee was big deal
People need to smell coffee rupee is 125 to Dollar or even less


Many Pakistanis Keep a Pakistani Bank account because they don't want to deal with bull shit carriage limit on cash when making visits to Pakistan


Places like Dubai or SWISS have a great banking system because they respect customers and treat them well


Just becasue a Bond is created , does not mean I will buy it unless all the under laying Bureaucracy is fixed


And no offence minimum bond value set at $5000 dollar ? hahahaha I am not a NBA player

 

[maithil]

Keeping minimum value at 5000 dollars is a big hurdle. Not many overseas Pakistani would invest this much amount in such a bond.

 

[valkyr_96]

The problem is many Western Banks in Pakistan are harassing Pakistani who live overseas who have their accounts in Pakistan , by sending them letters to declare their personal info to them passport data so their Pakistani Bank account can be shared with foreign countries

And Pakistan is allowing this to happen I know of case where Standard charter bank in Pakistan is sending such letters to Pakistani who keep their funds in Pakistan (life savings)
The person in question is almost 70+ in age (Luckily for person the funds in account were below the allowed limit in their foreign country so no reporting is needed)

But still for Pakistan , to allow such banks to openly discourage Pakistani National ID card holders to open a permanent account - it is a bit messed up

Seen those letters first hand and I was like wow this is sure messed up so Pakistanis can't open a account in Pakistan , if they do and leave some funds in saving they will get letters from Foreign Bank in Pakistan to give details about passport so this info can be passed to their Foreign resident country (Looks like a spy network to me)

So when the banks operating in Pakistan are treating Foreign Based Pakistani , how can Pakistanis overseas trust opening new accounts in Pakistan

These banks are acting as foreign agents inside Pakistan
I see it as a an attempt to discourage Pakistanis to Open Saving Accounts in Pakistan for future retirement or just merely helping invest in Pakistan (it is their hard earned money, so what if they live overseas)


Pakistan really need to put leash on these foreign run banks and improve customer service

Already not many keep a bank Account in Pakistan due to fear or theft , or Bank Manager stealing their funds or countless other problems like Bank being sold for 1 rupee to nawaz sharif's friend , such actions only discourage hard working Pakistanis to keep funds in Pakistan


For public info :
I do not have a bank account in Pakistan I wanted to open one feel good account in Pakistani bank so I can do stock trade, but since I heard this story I was discouraged

There is 0% chance I will be buying such certificates due to the story I mentioned above

Don't want to be double taxed
a) Once in Pakistan
b) Once in Foreign country


These kind of stories hurt Pakistan when you view it from scope of effect on Million + users



As an investor I hope for 100% customer service from Banks

can you share the said letter after redacting the persons name?

The problem is many Western Banks in Pakistan are harassing Pakistani who live overseas who have their accounts in Pakistan , by sending them letters to declare their personal info to them passport data so their Pakistani Bank account can be shared with foreign countries

And Pakistan is allowing this to happen I know of case where Standard charter bank in Pakistan is sending such letters to Pakistani who keep their funds in Pakistan (life savings)
The person in question is almost 70+ in age (Luckily for person the funds in account were below the allowed limit in their foreign country so no reporting is needed)

But still for Pakistan , to allow such banks to openly discourage Pakistani National ID card holders to open a permanent account - it is a bit messed up

Seen those letters first hand and I was like wow this is sure messed up so Pakistanis can't open a account in Pakistan , if they do and leave some funds in saving they will get letters from Foreign Bank in Pakistan to give details about passport so this info can be passed to their Foreign resident country (Looks like a spy network to me)

So when the banks operating in Pakistan are treating Foreign Based Pakistani , how can Pakistanis overseas trust opening new accounts in Pakistan

These banks are acting as foreign agents inside Pakistan
I see it as a an attempt to discourage Pakistanis to Open Saving Accounts in Pakistan for future retirement or just merely helping invest in Pakistan (it is their hard earned money, so what if they live overseas)


Pakistan really need to put leash on these foreign run banks and improve customer service

Already not many keep a bank Account in Pakistan due to fear or theft , or Bank Manager stealing their funds or countless other problems like Bank being sold for 1 rupee to nawaz sharif's friend , such actions only discourage hard working Pakistanis to keep funds in Pakistan


For public info :
I do not have a bank account in Pakistan I wanted to open one feel good account in Pakistani bank so I can do stock trade, but since I heard this story I was discouraged

There is 0% chance I will be buying such certificates due to the story I mentioned above

Don't want to be double taxed
a) Once in Pakistan
b) Once in Foreign country


These kind of stories hurt Pakistan when you view it from scope of effect on Million + users



As an investor I hope for 100% customer service from Banks

can you share the said letter after redacting the persons name?

Also the certificates have been granted tax exemption

 

[AyanRay]

Keeping minimum value at 5000 dollars is a big hurdle. Not many overseas Pakistani would invest this much amount in such a bond.

Exactly most of Pakistani expatriates are cab drivers or construction workers. Not many would be able to afford that kind of money.

 

[Yaseen1]

previously eurobonds were also issued for this purpose I think these bonds should not be based on interests but based on profit sharing and should not be limited to only overseas Pakistanis but all foreigners are invited to buy them

 

[nahtanbob]

The problem is many Western Banks in Pakistan are harassing Pakistani who live overseas who have their accounts in Pakistan , by sending them letters to declare their personal info to them passport data so their Pakistani Bank account can be shared with foreign countries

And Pakistan is allowing this to happen I know of case where Standard charter bank in Pakistan is sending such letters to Pakistani who keep their funds in Pakistan (life savings)
The person in question is almost 70+ in age (Luckily for person the funds in account were below the allowed limit in their foreign country so no reporting is needed)

But still for Pakistan , to allow such banks to openly discourage Pakistani National ID card holders to open a permanent account - it is a bit messed up

Seen those letters first hand and I was like wow this is sure messed up so Pakistanis can't open a account in Pakistan , if they do and leave some funds in saving they will get letters from Foreign Bank in Pakistan to give details about passport so this info can be passed to their Foreign resident country (Looks like a spy network to me)

So when the banks operating in Pakistan are treating Foreign Based Pakistani , how can Pakistanis overseas trust opening new accounts in Pakistan

These banks are acting as foreign agents inside Pakistan
I see it as a an attempt to discourage Pakistanis to Open Saving Accounts in Pakistan for future retirement or just merely helping invest in Pakistan (it is their hard earned money, so what if they live overseas)


Pakistan really need to put leash on these foreign run banks and improve customer service

Already not many keep a bank Account in Pakistan due to fear or theft , or Bank Manager stealing their funds or countless other problems like Bank being sold for 1 rupee to nawaz sharif's friend , such actions only discourage hard working Pakistanis to keep funds in Pakistan


For public info :
I do not have a bank account in Pakistan I wanted to open one feel good account in Pakistani bank so I can do stock trade, but since I heard this story I was discouraged

There is 0% chance I will be buying such certificates due to the story I mentioned above

Don't want to be double taxed
a) Once in Pakistan
b) Once in Foreign country


These kind of stories hurt Pakistan when you view it from scope of effect on Million + users



As an investor I hope for 100% customer service from Banks

In theory all US citizens and GC holders have to declare their overseas assets. that includes your pakistani assets

 

[ziaulislam]

Exactly most of Pakistani expatriates are cab drivers or construction workers. Not many would be able to afford that kind of money.

Most should be able to..5000 is very small amount