Pakistan must change currency notes , 77 billion USD hidden in homes!!!

[Murgah]

PAK GDP is around 305 billion (2017) add on this 77 billion ( and theres more, i'm sure) you would expand the economy by 25%.

question is how you can add this 77 billion in your economy

 

[Pakhtoon yum]

Shaukat Aziz during musharraf regime paved the way for money laundering and easy money hiding by introducing 5000 rupees money note, before that the highest paksitani money note was 1000 rupees, Pakistan government must ban 5000 rupees money note as an urgent economic reform. 5000 rupees makes it too easy to hide large chunks of money in houses, basements, wardrobes and suitcases etc.

European Union for example has already started the process of phasing out 500 Euro money notes to tackle the black economy and tax evasion issues.

Shouldn't be above 100 rupees

 

[313ghazi]

Does anyone remember how well this worked next door? Must be careful not to fall into the same pitfalls.

I suggest...

1. Print and stockpile new notes.
2. Issue new notes and immediately declare all old notes invalid for forex only. Any currency shop selling foreign currency can only buy new notes.
3. Old notes remain valid for businesses transactions for 2 years and will slowly phase out of use.
4. Old notes will be accepted by banks for up to 5 years, as long as they're put into an account.
5. Massive infomercial campaign so people don't panic.

These steps ensure that old notes can't be suddenly exchanged for foreign currency. Yet at the same time they can still be used by awam for shopping as they are slowly phased out.

 

[KhalaiMakhlooq]

question is how you can add this 77 billion in your economy

People turn to alternative currencies when stability is threatened. USD is a better currency to hold if PKR is highly volatile.

A simple solution would be to offer amnesty to 'black money' holders, allowing them to take advantage of their money if they pay a tax on it, eg. If you had 1m USD you would pay 25% tax to the treasury. You would be allowed to use the 750k .

 

[Fledgingwings]

It wont change anything as the ones going to do so are mostly the keepers.

 

[Indus Pakistan]

you cannot just change your currency into dollar for this first you make yourself american colony and usa have full control in your financial institutes and they decide how much reserve you have

There is easier way to do that. Just move to USA. Million Pakistani's have chosen that option. If you can't become a USA colony why not go one better - become a US citizen.

 

[Murgah]

People turn to alternative currencies when stability is threatened. USD is a better currency to hold if PKR is highly volatile.

A simple solution would be to offer amnesty to 'black money' holders, allowing them to take advantage of their money if they pay a tax on it, eg. If you had 1m USD you would pay 25% tax to the treasury. You would be allowed to use the 750k .

if pakitan change its currency on another the prices of goods and services in pakistan will be set according to what the US market sees fit. In other words, the cost of pakistan exports to the US will have drastically reduced, but the cost of imports from the US will have increased you became paralized

There is easier way to do that. Just move to USA. Million Pakistani's have chosen that option. If you can't become a USA colony why not go one better - become a US citizen.

azadi ki apni keemat hoti he

 

[VCheng]

Pakistani media reported that: “Pakistan’s Supreme Court has been informed that transactions of more than 100 billion Pakistani rupees ($77 billion) have been carried out through 107 fake bank accounts, the authorities said.

Is this $77 billion in transactions in addition to, or included in, the $200 billion that we were told would be recovered from abroad?

 

[Placemat]

Modi to be given Nobel prize for economics

 

[Yaseen1]

If we use usd as our national currency u.s will take control of our nuclear program .If we change currency notes it will not solve problem as people who are doing corruption will buy dollars against old currency notes and this will devalue rupee further due to floating of rupee supply in market ,when rupee has lost its value 5000 rs note is not high denomination of currency for money laundering

 

[Hakikat ve Hikmet]

With 70% of the business transaction undocumented, untaxed etc., according to the Pak Public Accountants Association, any move to regularize her eceonomy will work!!! Basically, the total economy is 2 to 3 times of the official economy!! Has it kept that way from the strategic point of view?!?!?

 

[Crystal-Clear]

It seems only armed forces and poor people are sacrificing their lives, limbs and wealth by indirect taxations and increasing oil prices. The un-patriotic elite of Pakistan is stealing wealth of Pakistan and sending abroad in bulks. The armed forces and intelligence agencies must launch special classified operation like they were doing in 5% FATA while 95% is being looted by the corrupt civil servants, politicians and businessmen. Pakistan’s current judicial system is cancerous and corrupt, can not deliver the results. Special military courts are the only solution to get the money back from these criminals. Shaukat Aziz introduced highest currency notes of Rs 5000 to make money laundering and black economy easy.

“Money laundering cannot happen without the cooperation of corrupt bankers and printing of high denomination currency notes is step one to money laundering”, few years ago I said to the Colombian ambassador to London in the British parliament at ‘ABC Colombia’ which is chaired by Jeremy Corbyn now leader of the Labour Party.

Pakistani media reported that: “Pakistan’s Supreme Court has been informed that transactions of more than 100 billion Pakistani rupees ($77 billion) have been carried out through 107 fake bank accounts, the authorities said.

According to the reports, a three-member bench of the country’s top court on Monday resumed the hearing of its suo-motu case on an investigation into money-laundering and fake bank accounts, reports Xinhua news agency.

A joint investigation team of the Federal Investigation Agency (FIA) has submitted a report to the apex court, revealing that the transactions of 47 billion Pakistani rupees have been done through fake bank accounts and 54 billion Pakistani rupees were transferred through the fictitious accounts of 36 companies.

Several fictitious accounts at some private banks were opened in 2013, 2014 and 2015, and illegal transactions worth billions of rupees were made through these accounts, according to investigation team.

The FIA has been investigating 32 people in the case, the reports added. Earlier, the Pakistani Interior Ministry barred 95 persons suspected to be involved in the case from leaving the country.

Former president Asif Ali Zardari, his sister FaryalTalpur and their associates are accused of sending Rs.35 billion abroad through fake accounts after which, their names were placed on Exit Control List (ECL).

FIA had prepared a report, revealing that more than 10 political personalities were allegedly involved in fictitious transactions worth Rs.35 billion.

“A Joint Investigation Team (JIT) tasked with probing fake bank accounts submitted a progress report in the Supreme Court on Monday which revealed that transactions of Rs54 billion were made through 107 fake bank accounts.

An FIA JIT had been investigating a 2015 case regarding fake accounts and fictitious transactions conducted through ‘benami’ accounts in Summit Bank, Sindh Bank and UBL.

Seven individuals, including PPP Co-Chairman Asif Zardari and his sister Faryal Talpur, were said to be involved in using those accounts for suspicious transactions. The accounts were allegedly used to channel funds received through kickbacks. While hearing a suo motu case regarding a delay in the FIA probe into the case, the SC had constituted a JIT to probe into the matter.” The daily Dawn reported on 22 Oct 2018.

Pakistan’s FIA Federal Investigation Agency (FIA) on traced banking transactions worth over Rs4 bln from fake accounts opened on the name of a dead man identified as Mohammad Iqbal.

As per details garnered, Mohammad Iqbal had passed away on May 9, 2014. All fake bank accounts were opened in three branches of the same private bank.

Sources privy to development stated that both FIA and joint investigation team [constituted on the directives of Supreme Court (SC)] were separately probing the incident.

On the other hand, JIT questioned Korangi’s Sarwat and recorded her statement. Sarwat—on whose name fake bank account was opened—distanced herself while asserting that she was unaware of the account.

Apart from bank account, a fake company was also registered on Sarwat’s name whereas she was supposed to give Rs11 million in terms of tax.

Fake accounts are on the rise in Pakistan, at some place any hawker becomes billionaire while on the other a nurse gets millionaire, of course by doing nothing. The matter took hype especially after a Karachi’s falooda seller Abdul Qadir turned out to be a billionaire. He was baffled and wanted to know the notice issued to him by FIA.

At the time of opening an account, genuine CNIC and other relevant information are required and in case of a person living abroad, a passport is needed but fake accounts are being opened and being operated in spite of strict criteria.

(Dr Shahid Qureshi is senior analyst with BBC and chief editor of The London Post. He writes on security, terrorism and foreign policy. He also appears as analyst on Al-Jazeera, Press TV, MBC, Kazak TV (Kazakhstan), LBC Radio London. He was also international election observer for Azerbaijan April 2018, Kazakhstan 2015 and 2016 and Pakistan 2002. He has written a famous book “War on Terror and Siege of Pakistan” published in 2009. At Government College Lahore he wrote his MA thesis on ‘Political Thought of Imam Khomeini’ and visited Tehran University. He is PhD in ‘Political Psychology’ and studied Law at a British University. He also speaks at Cambridge University. He is a visiting Professor at Hebe University in China.)

Views expressed are not of The London Pot

we should do that but systematically . not like modi.